Coronation’s South African Equity Fund, which aims to create wealth for investors through JSE-listed companies, has large holdings in Prosus, Richemont, AB InBev, and Glencore.
While investments in foreign markets are specifically excluded, the fund can invest in international companies that are listed in South Africa.
There are no restrictions on how much exposure the fund can have to different sectors like mining, financial, or industrial companies.
The fund is fully invested in shares at all times. It is mandated to use derivative instruments for efficient portfolio management purposes.
The top companies in the fund are listed in South Africa, but many operate globally and derive most of their earnings from other markets.
The Coronation South African Equity Fund aims to outperform the JSE Capped All Share index over the long term.
However, it failed to do so. The fund’s return since its inception in 2015 was 8.2%, lower than its benchmark’s return of 9.4%.
Over the last year, the fund outperformed its benchmark by 2.7% with a return of 11.8% compared to the benchmark’s 9.1%.
Ultimately, investors would have been better off investing in a JSE Capped All Share index ETF rather than Coronation’s South African Equity Fund.
Top shares in Coronation’s South African Equity Fund
Coronation’s South African Equity Fund is highly concentrated in the basic materials (mining) and the financial services sectors. These sectors make up half of the fund’s holdings.
The top 10 shares, which include Prosus, Richemont, AB InBev, and Glencore, account for 55% of the fund’s total holdings.
|Top 10 Holdings (as of 31 January)||% of Fund|
|Standard Bank Group||8.4%|
|Anglo American PLC||7.7%|
|Anheuser-Busch inBev SA/NV||5.2%|