Global vs South African equity fund performance
An analysis by Daily Investor shows that over the last five years, Coronation’s global equity fund has outperformed its South Africa and general equity funds.
Coronation is one of South Africa’s largest asset managers, with over R600 billion in assets under management.
The asset manager offers three equity funds that allocate their capital differently.
- The South African equity fund is limited to investing in JSE-listed companies.
- The global equity select fund, domiciled in Ireland, is mandated to invest across a broad range of geographies and its holdings are held in US Dollars.
- The general equity fund is allowed to invest in JSE-listed companies and international assets. However, it tends to invest most of its funds in South Africa.
As of February 2023, the general equity fund invested 56% of its money in South African-listed companies, with the rest in global equities.
The Total Investment Charge (TIC) differs between the three funds. The global equity fund charges 1.52%, the South African equity fund 1.84%, and the general equity fund 1.23%.
There are also similarities across these funds.
All these funds aim to maximise long-term growth by being fully invested in equities at all times.
Coronation recommends investing for ten years at least to mitigate the short-term fluctuations of equities and capture the long-term performance of their funds.
The top 10 holdings of these funds are listed below.
| Global Equity Select | SA Equity | Equity |
| Alphabet | Prosus | Prosus |
| Charles Schwab | Standard Bank | Standard Bank |
| Visa | Anglo American | Anglo American |
| Capri Holdings | AB InBev | Auto1 Group |
| JD.com | Richemont | Capri Holdings |
| Prosus | Naspers | St James’ Place |
| Canadian Pacific Railway | FirstRand | JD.com |
| Airbus | Sasol | AB InBev |
| Entain | Glencore | Naspers |
| Microsoft | MTN | FirstRand |
Performance comparison
The performance of Coronation’s equity funds is diverse, with the global equity fund returning 10.5% annually over the last five years in rand terms.
This is better than the South African and general equity funds, with 8.8% and 8.3% annual returns, respectively.
The global equity fund benefits from additional capital growth when converted into rands, as the dollar has significantly appreciated against the rand over the last five years.
For a fair comparison, the global equity select feeder fund is used. This ensures that the funds’ returns are compared in the same currency, rands.
However, all of these funds do not fare well when compared to local index trackers such as the Satrix Top 40, Sygnia S&P 500, and Satrix MSCI World.
The performance of all the funds in the table below is denominated in rands for a fair comparison.
The performance of Coronation’s equity funds versus the Satrix Top 40 index ETF and the Sygnia S&P 500 ETF is shown below.
| 1 year | 3 years | 5 years | |
| Global Equity Select Feeder Fund | 5.7% | 7% | 10.5% |
| SA Equity | 8.8% | 19.9% | 8.8% |
| Equity | 6.6% | 16% | 8.3% |
| Satrix Top 40 ETF | 6.16% | 19.46% | 9.84% |
| Sygnia S&P 500 ETF | 7.8% | 16.2% | 17.9% |
| Satrix MSCI World ETF | 10.01% | 16.04% | 16.53% |
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