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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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 (2.7)% (15.8)% (0.7)% (4.5)% 7.3%
Benchmark* 0.2% 2.6% 5.8% 1.3% 0.9%
Difference (2.8)% (18.4)% (6.5)% (5.8)% 6.4%
CALENDAR YEAR PERFORMANCE
YEAR TO DATE 2018 2017 2016 2015
Strategy (12.0)% (0.1)% 36.9% (4.9)% (24.6)%
Benchmark* 1.5% 2.4% 1.3% 0.8% 0.3%
Difference (13.5)% (2.5)% 35.6% (5.6)% (24.9)%

* 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.