The Coronation Global Opportunities Equity Fund is a multi-manager fund that invests in a limited number of funds. The fund is in turn managed by top managers that mainly have exposure to shares in the developed markets. The fund is also mandated to include some exposure to emerging markets.
The markets that the fund invests in include the United States of America, Japan, a select part of Europe and more. The Coronation global opportunities equity fund is well diversified and has a low to moderate level of risk. This makes the fund less volatile than a fund that is concentrated such as a bond fund that invests in a select group of bonds.
Since short-term investments don’t provide investors with the maximum returns, a fund investment should be made for the long term. Investors are advised to keep their money in the fund for at least 10 years or longer. The long-term performance of the fund is generally better. Short-term investments can be made with other funds, such as the Coronation Jibar Plus Fund.
Anyone looking to invest in a fund with some exposure to the top equities funds in the world might consider the Coronation Global Opportunities Equity fund. This helps one’s portfolio become more diversified. The fund is quoted in US dollars and can be used to combine investments from regionally focused funds that are quoted in rands.
The Coronation Global Opportunities Fund was established on May 12, 2008, the same year that the global financial crisis began. The fund has produced consistent returns for investors and has displayed steady growth since its inception. The fund is, however, still in its infancy and has much to prove.
Since its start, the fund has lagged below its target benchmark. Continue reading as we present a critical analysis of the fund to gain a more in-depth understanding of the fund and how it functions.
Coronation Global Opportunities Equity fund summary
The Coronation Global Opportunities Equity Fund is an investment fund that invests in developed and emerging markets. A number of investment firms with deep expertise in the US, Asian, and European markets manage the fund on a multi-manager basis. The quote for the fund is in US dollars.
The fund uses a variety of tactics to achieve its goals. 6 to 10 strategies may be used when carrying out the mandate of the fund, and each strategy is chosen based on its historical record of outperforming the market over the long run, its investment philosophy, and the caliber of the fund managers.
The fund’s benchmark is the MSCI All Country World Index. Since the fund’s establishment, it has been competing with its benchmark, closely documenting increases that are similar to the benchmark.
The fund has grown by 112.3 % and an average of 5.5% annually since its inception. The established benchmark has grown by 144.2 % throughout the same time frame, a gain of 6.6 % each year. The outcome is that the fund has exceeded its benchmark by 31.9 %, or by an average of 1.1% annually.
In the short to medium term, the fund’s high rate of fluctuation can threaten an investor’s capital. For instance, the fund saw its worst annual loss ever between April 2019 and March 2020, losing 24 %. Short-term investors (those who invest for less than a year) risk losses on such fluctuations.
The fund occasionally returns to a positive position. The fund experienced its highest annual growth rate of 81.5 % between April 2020 and March 2021. It should be noted that these highs and lows are unpredictable and that, for best results, the investment period recommended by the fund should be observed.
The fund has multiple managers and executes strategies to produce results. We have created a list of the assets that the fund invests in so that you can comprehend how the fund has grown. Below is a list of the assets.
Coronation Global Opportunities Equity fund asset allocation
| ASSETS | PORTFOLIOS PERCENTAGES |
| Equities: | |
| Global (from 7 funds) | 95.5% |
| Equity futures | 4.23% |
| Cash | 0.27% |
The majority of the fund was invested in stocks from international funds run by other fund managers. Because of the fund’s widespread profit sharing, it offers moderate returns (between the investor, Coronation and 3rd party managers).
Depending on the fund’s performance, the investment will increase in value. A person’s investment may experience a short-term loss and a long-term rise. One will need to make a lump sum investment of at least $15,000 to get started.
Purchases of fund units will be made using the investment. A team of managers from different parts of the world will oversee the fund. Knowing who oversees your investment other than Coronation is important if you wish to invest in the fund.
The top 5 Holdings for the Coronation Global Opportunities Equity fund are mentioned below. Here is a list of them.
| # | Name of fund |
| 1 | Egerton Capital Equity fund |
| 2 | Contrarius Global Equity fund |
| 3 | Tremblay Capital |
| 4 | Cimi Global Opportunities Equity Strategy |
| 5 | Select Equity Group |
Only funds that invest in stocks are accepted into the Coronation Global Opportunities Equity fund. As a result, only fund managers who invest exclusively in the US, European, and some Asian equity markets were selected. To help the fund achieve its goals, the assets are periodically rebalanced.
Advantages of the Coronation Global Opportunities Equity fund
- This fund offers individuals an opportunity to invest in a fund that invests in other funds that invest in equities from developed countries.
- The fund offers a more stable investment than most investments that invest in stocks.
- Long-term investments are well rewarded as the fund is engineered to reward the long-term investor.
- investors don’t have to activate any trades when investing in the fund.
- The fund tries to track an ambitious benchmark and matches and outperforms it from time to time.
Disadvantages of the Coronation Global Opportunities Equity Fund
- The fund can force a short-term investor to withdraw losses from the fund since the fund can be very volatile.
- The minimum investment of $15,000.00 is very high.
Conclusion
A method of investing in foreign stocks has been made available by the Coronation Global Opportunities Equity fund. The fund makes investments in other funds and offers moderate returns. This fund may be a fantastic instrument for preserving capital and generating interest. But for a regular investor, the level of volatility can be too great.
