Developing A Diversified Offshore Portfolio

Coronation has three global funds that are suited to investors who are overexposed to SA.

-  Leon Kok

Coronation Fund Managers’ global funds have persistently been leaders in the South African investing space and certainly deserve consideration by all those wishing to allocate a portion of their portfolio offshore. Three funds that we strongly recommend are the Global Equity Select Fund, Global Managed Fund and Global Capital Plus Fund. Though serving different needs and constituencies and being uniquely managed as such, they are all suited to investors who are overexposed to SA; seeking a broader opportunity set, and looking to diversify into well-constructed offshore portfolios. Each fund has different features, which we will discuss.

Global Equity Select Fund

Launched in 2015 and domiciled in Ireland, it aims to give investors access to the best opportunities in global equity markets.

Managed by Neil Padoa and Humaira Surve with $335m under management, its cumulative return since launch has been an impressive 54.8%, with annualised returns at 37.5% in 2019 and 14.1% last year.

“The fund invests in shares that we expect to deliver superior long-term investment growth,” Padoa explains.

“Its share selection is the product of rigorous international research conducted by Coronation’s investment team and managed to deliver the best possible risk-adjusted returns over an investment horizon of five years or more.”

Padoa says that he and his colleagues are still finding attractive opportunities. “Nothing is guaranteed in equity markets and returns will likely be lumpy, but over the long term we think the portfolio has the potential to deliver attractive returns in US dollar.”