Inflation Plus Strategy

INSTITUTIONAL

INVESTMENT OBJECTIVE:

The Coronation Inflation Plus Strategy targets positive real returns with an overriding focus on limiting downside returns or portfolio losses. Therefore, capital preservation in real terms is equally important to return optimisation. The Strategy is managed in accordance with the limits of Regulation 28 of the Pension Funds Act. The Strategy can invest up to 40% in Domestic and Foreign Equities.


Coronation is a long-term, valuation-driven investment house. 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.

Loading Chart Data...

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 (1.7)% 7.7% 6.3% 7.3% 10.2%
Benchmark* 0.3% 4.5% 4.8% 5.0% 5.2%
Difference (2.0)% 3.2% 1.5% 2.3% 5.0%
CALENDAR YEAR PERFORMANCE
YEAR TO DATE 2018 2017 2016 2015
Strategy 6.2% 2.6% 9.1% 6.3% 7.5%
Benchmark* 2.4% 4.5% 4.7% 6.8% 5.2%
Difference 3.8% (1.8)% 4.4% (0.5)% 2.3%

* Consumer Price Index (CPI)

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.