Global Emerging Markets Equity Strategy
The Coronation Global Emerging Markets Equity Strategy provides access to the best investment opportunities in Global Emerging Markets. It aims to deliver capital growth through a focused equity portfolio of securities of companies based in emerging markets or that derive a significant portion of their business from emerging economies. The objective is to outperform the MSCI Emerging Markets Index over 5 years and longer periods.
Coronation’s investment philosophy aims to produce outperformance by focusing exclusively on the long term. We conduct our own research to determine what a share is worth (its ‘fair value’), and only invest if the current price is sufficiently below this level, thereby offering some margin of safety. We focus on what a business will earn in a ‘normal’ environment over the long term (which is often many years from now) and what investors, in our view, should be willing to pay for such an earnings stream today. This allows us to ignore short term ‘noise’, which is a key competitive advantage since shares often trade on near-term earnings prospects instead of long term earnings power. Given the large investable universe, we have a preference for above-average businesses – those that exhibit a combination of key factors such as sustainable competitive advantage, pricing power, decent returns on capital and high cash generation abilities – but our decision to invest will always be based on whether there is sufficient margin of safety relative to the risks of each investment case. Our portfolios are fairly concentrated (50-60 stocks) and reflect our high-conviction ideas prominently. They are constructed without any reference to the benchmark, so short term portfolio returns will differ materially - whether positive or negative - from those of the benchmark. Over a more meaningful performance measurement period of at least five years, our focus on owning only undervalued shares should, in our view, deliver performance in excess of the benchmark. The primary method of risk control is only owning stocks that trade well below fair value to ensure there is no permanent loss of capital from owning overvalued shares. Additionally, our portfolios are constructed such that there is no excessive exposure to any one country, industry or other single identifiable factor that can have an unexpected and outsized impact on portfolio returns.
The above graph is provided for illustrative purposes only. It reflects composite performance of the strategy and is gross of fees.
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* MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index)
The performance shown is gross of fees. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. The volatility of the MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index) represented above may be materially different from that of the Global Emerging Markets Equity Strategy. In addition, the holdings in the accounts comprising the Strategy may differ significantly from the securities or components that comprise the MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index). The MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index) has not been selected to represent an appropriate benchmark to compare the Global Emerging Markets Equity Strategy's performance, but rather is disclosed to allow for comparison of the Strategy's performance to that of a well-known and widely recognized index.
|1 MONTH||1 YEAR||3 YEARS||5 YEARS||SINCE INCEPTION|
|CALENDAR YEAR PERFORMANCE|
|YEAR TO DATE||2018||2017||2016||2015|
* MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index)
The performance shown is net of fees. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. The volatility of the MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index) represented above may be materially different from that of the Global Emerging Markets Equity Strategy. In addition, the holdings in the accounts comprising the Strategy may differ significantly from the securities or components that comprise the MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index). The MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index) has not been selected to represent an appropriate benchmark to compare the Global Emerging Markets Equity Strategy's performance, but rather is disclosed to allow for comparison of the Strategy's performance to that of a well-known and widely recognized index.
The material being provided (the “Material”) including all information relating to the Coronation range of funds (the “Funds”) is confidential and is intended solely for the use of the person or persons to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person.
Coronation Asset Management (Pty) Limited, Coronation Investment Management International (Pty) Limited, Coronation Alternative Investment Managers (Pty) Limited (regulated by the Financial Sector Conduct Authority of South Africa) or one of its affiliated entities (together “Coronation”) is the investment manager to the Funds. The Material is for information only and does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe for or purchase an investment in the Funds, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract for investment in the Funds. Any such offer shall only be made pursuant to the offering material regarding the Funds. The Funds are subject to management, administration and performance fees. Past performance is not necessarily a guide to future performance. Investors may not receive back the full amount invested and may suffer capital loss. Investments in the Funds may not be readily realisable. Opinions expressed in this document may be changed without notice at any time after publication. Nothing in this document shall constitute advice on the merits of buying and selling an investment. All income, capital gains and other tax liabilities that may arise as a result of participating in this investment structure, remain that of the investor.
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Notice to Investors in Denmark: In order to invest in the Funds, the investor must invest at least € 50,000. Interests in the Funds are being offered to a very limited number of selected Danish investors and therefore no action has or will be taken that would allow an offering of such interests to the public in Denmark. Further, neither this Material nor any offering material has been registered with the Danish Financial Supervisory Authority or the Danish Business Authority under the relevant Danish acts and regulations on the offering in Denmark of interests in the Fund. Accordingly, this Material may not be made available nor may interests in the Funds otherwise be marketed and offered for sale in Denmark other than in circumstances which are deemed not to be marketing or an offer to the public in Denmark.
Notice to Investors in Finland: Interests in the Funds will be offered in Finland exclusively to investors qualifying as “professional investors” as defined under the Finnish Act on Mutual Funds (sijoitusrahastolaki, 29.1.1999, as amended, the “MFA”). Accordingly, prospective investors should acknowledge that this Material is not a fund prospectus as meant in the MFA and the marketing of interests in the Funds is not subject to marketing permission from the Finnish Financial Conduct Authority (Rahoitustarkastus; “FIN-FCA”). Furthermore, even if interests in the Funds were to be construed as “securities” as defined in the Finnish Securities Markets Act (arvopaperimarkkinalaki, 26.5.1989/495, as amended, the “SMA”), based on the exemptions set forth in Decree 452/2005 issued by the Ministry of Finance, the offering of interests in the Funds would be exempted from the prospectus requirements of the SMA. Accordingly, prospective investors must acknowledge that this Material is not a prospectus within the meaning set forth in the SMA. Prospective investors should also note that neither the sponsor of the Funds nor any of its affiliates is an investment firm (sijoituspalveluyritys) as meant in the Finnish Investment Firms Act (laki sijoituspalveluyrityksistä, 922/2007, as amended and restated) and they are not subject to the supervision of the FIN-FCA. The FIN-FCA has not authorized any offering for the subscription of interests in the Fund; accordingly, interests in the Funds may not be offered or sold in Finland or to residents thereof except as permitted by Finnish law. This Material has been prepared for private information purposes only and it may not be used for, and shall not be deemed, a public offering of interests in the Funds. This Material is strictly for private use by its holder and may not be passed on to third parties or otherwise distributed publicly.
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Pursuant to Article 211-3 of the AMF General Regulation, French residents are hereby informed that:
- the transaction does not require a prospectus to be submitted for approval to the AMF;
- persons or entities referred to in Point 2°, Section II of Article L.411-2 of the Monetary and Financial Code may take part in the transaction solely for their own account, as provided in Articles D. 411-1, D. 411-2, D. 734-1, D. 744-1, D. 754-1 and D. 764-1 of the Monetary and Financial Code; and
- the financial instruments thus acquired cannot be distributed directly or indirectly to the public otherwise than in accordance with Articles L. 411-1, L. 411-2, L. 412-1 and L. 621-8 to L. 621-8-3 of the Monetary and Financial Code.
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Notice to Investors in Switzerland: Under the Collective Investment Schemes Act of June 23, 2006 (the “CISA”), the offering, sale and distribution of units in foreign collective investment schemes in or from Switzerland are subject to authorization by the Swiss Financial Market Supervisory Authority. The concept of “foreign collective investment schemes” covers inter alia foreign companies and similar schemes (including those created on the basis of a collective investment contract or a contract of another type with similar effects) created for the purpose of collective investment, whether such companies or schemes are closed end or open end. Units in a foreign investment scheme which has not been authorized by the Swiss Financial Market Supervisory Authority may only be promoted in or from Switzerland provided that no public solicitation, offering or advertising is carried out by persons operating in or from Switzerland. There are reasonable grounds to believe that the Funds would be characterized as a foreign collective investment scheme from a Swiss legal point of view. As interests in the Funds have not been and cannot be registered or authorized for distribution under the CISA, any offering of the interests, and any other form of solicitation of investors in relation to the Funds (including by way of circulation of offering materials or information, including the Material, must be made by way of private placement, e.g. by limiting the offering to investors considered as qualified investors as defined in the CISA and in Circular 08/8 Public Offering of the Swiss Financial Market Supervisory Authority dated 20 November 2008. Failure to comply with the above-mentioned requirements may constitute a breach of the CISA.
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Notice to Investors in the United Kingdom: The Material has been prepared by Coronation Asset Management (Proprietary) Limited and/or Coronation Investment Management International (Proprietary) Limited and/or Coronation Alternative Investment Managers (Pty) Limited, authorised Financial Services Providers in South Africa and approved by Coronation International Limited (“CIL”) for the purposes of section 21 of the Financial Services and Markets Act 2000. CIL is authorised and regulated by the Financial Services Authority (“the FCA”). To the extent that the Material document is issued in the United Kingdom, it is being issued to persons who are professional clients or who are exempt investors in accordance with the FSMA 2000 (Promotion of Collective Investment Schemes Exemptions Order 2005). Many of the protections provided by the UK regulatory structure may not apply to investments in any of the Coronation funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. The Material does not purport to be all inclusive or to contain all the information which prospective investors may require. The approval by CIL is limited to the information contained in the Material. The Material is not an advertisement and it is not intended for public use or distribution. The Material does not constitute advice on the merits of buying or selling an investment nor does it form part of any offer to issue or sell, not any solicitation of any offer to subscribe for or purchase, shares in any fund managed by Coronation, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract for shares in any fund. It is recommended that an investor first obtain the appropriate legal, tax, investment or other professional advice and formulate an appropriate investment strategy that would suit their individual risk profile prior to acting upon such information. Past performance is not necessarily a guide to future performance.
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The interests in the Funds offered hereby have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any US state. The interests in the Funds will be offered and sold pursuant to the exemption provided by Section 4(2) of the Securities Act and Regulation D thereunder and similar exemptions under the securities laws of the US states. The Funds will not be registered as an investment company under the United States Investment Company Act of 1940, as amended (the “Investment Company Act”). Consequently, investors in the Funds will not be afforded the protections of the Investment Company Act.
The interests in the Funds offered hereby are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act and any applicable state securities laws. Additionally, the interests in the Funds may not be sold, transferred, assigned or hypothecated, in whole or in part, except as provided in the organizational documents of the Funds. There will be no public market for the interests in the Funds, and there is no obligation on the part of any person to register the interests in the Funds under the Securities Act or any state securities laws. Accordingly, United States investors should be aware that they will be required to bear the financial risks of their investment in the units for an indefinite period of time.