Africa Frontiers Strategy

INSTITUTIONAL

INVESTMENT OBJECTIVE:

The Coronation African Frontiers Strategy aims to maximise the long-term risk-adjusted returns available from investments on the continent through capital growth of the underlying stocks selected. It is a flexible portfolio primarily invested in listed African equities or stocks listed on developed and emerging market exchanges where a substantial part of their earnings are derived from the African continent. The Strategy may hold cash and interest bearing assets where appropriate.


Coronation is a long-term, valuation-driven investment house, focused on bottom-up stock picking. Our aim is to identify mispriced assets trading at discounts to their long-term business value (fair value) through extensive proprietary research. In calculating fair values, through our fundamental research, we focus on through-the-cycle normalised earnings and/or free cash flows using a long-term time horizon. The Portfolio is constructed on a cleanslate basis based on the relative risk-adjusted upside to fair value of each underlying security. The Portfolio is constructed with no reference to a benchmark. We do not equate risk with tracking error, or divergence from a benchmark, but rather with a permanent loss of capital.

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*Secured Overnight Financing Rate (SOFRINDX Index) from 01 December 2021. Previously ICE LIBOR USD 3 Month (US0003M Index)

The value of investments may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance.

CUMULATIVE PERFORMANCE
1 MONTH 1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION
Strategy (5.4)% (12.3)% 7.8% (4.1)% 4.7%
Benchmark* 0.4% 5.4% 7.2% 2.1% 1.2%
Difference (5.8)% (17.7)% 0.6% (6.2)% 3.5%
CALENDAR YEAR PERFORMANCE
YEAR TO DATE 2023 2022 2021 2020
Strategy (3.5)% (2.7)% (23.4)% 30.7% (6.4)%
Benchmark* 0.9% 5.2% 1.7% 0.2% 0.7%
Difference (4.4)% (7.9)% (25.1)% 30.5% (7.0)%

*Secured Overnight Financing Rate (SOFRINDX Index) from 01 December 2021. Previously ICE LIBOR USD 3 Month (US0003M Index)

The value of investments may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance.