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0.32  /  0.16%


NAV on 2021/07/28
NAV on 2021/07/27 203.73
52 week high on 2021/07/26 204.43
52 week low on 2020/10/30 183.35
Total Expense Ratio on 2021/03/31 1.1
Total Expense Ratio (performance fee) on 2021/03/31 0
Incl Dividends
1 month change 0.34% 1.23%
3 month change 0.7% 1.59%
6 month change 3.03% 4.7%
1 year change 10.1% 14.32%
5 year change 2.47% 7.02%
10 year change 0% 0%
Price data is updated once a day.
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  • Sectoral allocations
Basic Materials 1108.35 3.78%
Consumer Discretionary 545.34 1.86%
Financials 725.50 2.48%
General Equity 4434.43 15.13%
Liquid Assets 1802.15 6.15%
SA Bonds 13651.67 46.59%
Specialist Securities 335.08 1.14%
Technology 1008.06 3.44%
Offshore 5690.83 19.42%
  • Top five holdings
O-CGLOPEQ 4113.84 14.04%
O-COGLCPL 1368.45 4.67%
 NASPERS-N 1008.06 3.44%
 ANGLO 783.00 2.67%
 BATS 545.34 1.86%
  • Performance against peers
  • Fund data  
Management company:
Coronation Fund Managers Ltd.
Formation date:
ISIN code:
Short name:
South African--Multi Asset--Low Equity
CPI plus 3%
  • Fund management  
Charles de Kock
Charles heads up the Absolute Return investment unit and is a portfolio manager across all strategies within the unit. He also co-manages the Coronation Balanced Defensive and Capital Plus unit trust funds. Charles has more than 30 years’ investment experience, plays a leadership role in the asset allocation process and is involved in all investment discussions.
Pallavi Ambekar
Pallavi is a senior portfolio manager responsible for the co-management of institutional portfolios within the Absolute Return strategy as well as the Coronation Balanced Defensive and Capital Plus unit trust funds. She has 17 years’ investment experience. She also has research responsibility for certain large capitalisation shares listed on the JSE.  

  • Fund manager's comment

Coronation Balanced Defensive comment - Dec 19

2020/02/17 00:00:00
The year and final quarter of 2019 turned out to be a decent one for investors who stayed invested in the markets despite very poor news on the economic front. The South African economy, which was already operating at near-stall speed, also had to contend with severe load shedding from crippled electricity supplier Eskom. Yet, equities and bonds performed well and the rand firmed. The market action showed once again how difficult it is to time an unexpected strong performance or a sharp correction. The FTSE/JSE Capped SWIX All Share Index added 5.3% in the quarter and 6.8% for the year. The All Bond Index added 1.7% over the quarter and 10.3% for the year. Only listed property performed poorly, with 0.6% and 1.9% over the quarter and full year respectively. Global equities were also strong, rising 0.4% during the quarter and a very strong 24.5% for the full year, as measured by the MSCI World Index in rand terms.
The fund showed a commendable 9.5% return for the year, which comfortably exceeded its target of inflation plus 3%. It was, however, not good enough to take the three- and five -year returns to the targeted level. Over the past 10 years and since inception, the fund has managed to deliver on its targeted return and, in addition, has also protected capital over all rolling 12-month periods. Major contributors for the year include Northam Platinum, Naspers, British American Tobacco, Anglo American and Anheuser- Busch. Detracting from performance were Sasol, Shoprite, Nedbank, Advtech and Woolworths. The contributors far exceeded the detractors and the fund’s equities delivered a return of 9.2% for the year. Domestic bonds delivered a total return of 9.4%, while property lost 4%. Foreign assets were the best performing asset class with a total return of 19.0%.
We increased our exposure to the South African bond market due to the highly attractive real yields on offer. The bond component of our portfolio carries a yield of 9%. While we do expect inflation to rise somewhat from the current sub-4% level, it leaves us with a comfortable margin of safety. The high yields in the domestic bond component helped to keep us below the maximum offshore exposure, where yields are extremely low. It is also an argument for limiting domestic equity exposure to less than our maximum allowed.
It remains difficult for companies linked to the South African economy to meaningfully grow earnings due to a lack of top line growth in almost every sector. We do acknowledge that the earnings base is low and ratings generally attractive, but without a rise in consumer and business confidence, spending will remain depressed. Our exposure to equities is therefore still skewed towards the global stocks listed on the JSE, such as Naspers, British American Tobacco, Anheuser Busch and others. Exposure to the socalled SA Inc. stocks is held mostly through banks and defensive retailers, with very limited exposure to cyclical domestic stocks.
The separate listing of Prosus (the non-South African part of Naspers) has so far not had the desired effect of narrowing the wide discount of Naspers to its underlying assets of Tencent and the other components. We added to Naspers during the quarter, as we believe it still offers exceptional long-term value. It therefore remains the fund’s largest single holding. Looking forward, we are of the view that the targeted return of inflation plus 3% is achievable. The bond component alone has a high enough yield to deliver the required real return and is supported by a good selection of quality domestic and global equities that are reasonably valued. It is, however, crucial that government passes a budget early in the new year that adequately addresses the deteriorating fiscal situation. Some tough decisions need to be taken to curtail spending and stop the bleeding at the SOEs. The placing of South African Airways in business rescue is a signal that government has grasped the seriousness of the situation. More action is also needed at other State-run entities. The Reserve Bank, which has cited the dire fiscal situation as a reason for keeping interest rates high, will have room to loosen monetary policy somewhat if the budget addresses some of these crucial fiscal issues adequately. Lower interest rates will help the economy and should also be viewed positively by the markets.
  • Fund focus and objective  
The fund aims to provide a reasonable level of current income and seeks to preserve capital in real terms, with lower volatility over the medium to long-term. The fund's return objective is to outperform cash plus 3% and it is not a guaranteed fund.
The fund is broadly diversified across all asset classes and sectors and will follow an active asset allocation strategy, combined with an appropriate security selection process. The fund complies with Regulation 28 of the South African Pension Funds Act, which limits exposure to listed real estate and international assets to 25% and 15% respectively. In addition, exposure to a combination of domestic and foreign equities may not exceed 40%.

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