Coronation’s flagship Balanced Plus fund has increased its weighting of offshore assets to the limit of 45% over the past 12-18 months.
- The fund, with R105 billion in funds under management, is a key component of Regulation 28-compliant retirement investments.
- The change in investment strategy follows the increased limits under the Pension Funds Act, allowing for a maximum of 45% allocation to international assets.
- The fund’s percentage of offshore assets more than doubled from 23.1% in December 2021 to 48.2% in May 2023.
- The shift includes a notable increase in foreign equities from 22.6% to 40% and foreign bonds from 0.7% to 6.7%.
- The depreciation of the rand against the US dollar accounts for around a quarter of the increase in the weighting of foreign assets.
- Coronation highlights the improved valuation of global equities and the diversification benefits of the energy sector in its investment decisions.
- The fund’s top holdings include global stocks listed in South Africa, such as Prosus, Anglo American, Glencore, AB InBev, Richemont, and Naspers.