United States - Institutional
Coronation named Best Africa Fund Manager 2012
10 October 2012 - Coronation Insights
Coronation Fund Managers has once again been recognised as Best Africa Fund Manager at the prestigious annual Africa investor Index Series Awards. “Having been recognised in 3 out of the 4 years since our funds launched is testament to the success of our investment philosophy. This approach is designed to consistently
deliver industry-leading risk adjusted returns,” says Coronation’s Africa portfolio manager, Peter Leger. The Africa investor Index Series Awards are the only international, pan-African awards that recognise and reward Africa’s institutional investors.
Expanding on Coronation’s investment approach, Leger explains the single investment philosophy which is ingrained in the Coronation culture. “We are a long-term, valuation-driven investment house that aims to identify mispriced assets trading at discounts to their long-term fair value.” There are compelling reasons why Africa offers a unique long-term investment opportunity and as a result investing in the region has become a highly competitive space. Coronation is one of South Africa’s most successful asset management companies and their focus in Africa is to deliver a compelling, risk-adjusted absolute return over the long term.
“There are no short-cuts to delivering consistent capital growth from this region. Since the funds’ launch 4 years ago, we have spent a vast amount of time doing in-country research. Simply stated, we believe it is the only way to deliver superior stock-picking, particularly with a focus on minimising down-side risks. The hard work is paying off though, with total cumulative returns in excess of 70% since inception1,” says Leger. As at end September 2012, the UCITS-compliant Coronation All Africa Fund delivered an annualised return of 13.7%2 since inception, while the Coronation Africa Frontiers Fund (which invests ex-South Africa) delivered an annualised return of 15.7%2 since launch in October 2008. Both funds are rated by Morningstar™ with 5 and 4 stars respectively.
Commenting on their outlook for the African continent, Leger says: “Coming off a very low base, we continue to see enormous opportunities in these markets with many businesses trading well below their fair values.” Coronation also suggests that overseas institutional investors are seeing similar prospects for the African
market. Justin McKie, who is responsible for Coronation’s international business development comments: “We have seen an increasing amount of interest in Africa from the largest international investors who acknowledge the region’s potential. We believe the challenge to get the best out of the vast opportunity set is to find an Africa-based asset manager with the right investment approach and resources, which is where Coronation comes in.”
Regarding the management of their Africa portfolios, Leger explains that these portfolios are managed on a clean-slate basis and, as such, they do not use indices as a starting point for building a portfolio, preferring to rely on valuation. “We emphasise stock selection rather than top down geographic allocation or macro themes.” According to him they are also comfortable taking positions away from benchmarks, with these positions being underpinned by convictions from their proprietary analysis.
Cumulative returns since inception to end September 2012 for the Coronation All Africa and Africa Frontiers funds total 70.76% and 79.43% respectively.
Gross of fees in US dollars
For media-related inquiries, please contact:
Louise Pelser
T: +27(21) 680 2216
M: +27(76) 282 3995
lpelser@coronation.co.za
Coronation Fund Managers Limited is one of southern Africa’s most successful third-party fund management companies. As a pure fund management business it provides individual and institutional investors with expertise across Developed Markets, Emerging Markets and Africa. Clients include some of the largest retirement funds, medical schemes and multi-manager companies in South Africa, many of the major banking and insurance groups, selected investment advisory businesses, prominent independent financial advisors, high-net worth individuals and direct unit trust accounts. We are 29% staff-owned, have offices in Cape Town, Johannesburg, Pretoria, Durban, Gaborone, Mbabane, Windhoek, London and Dublin and are listed on the Johannesburg Stock Exchange. As at the June 2012 quarter-end, assets under management total R309 billion. For more information, visit www.coronation.com.
Disclaimer
Any information being provided herein (the “Information”) including information relating to the Coronation range of funds (the “Funds”) are not designed for use in any jurisdiction or location where the publication or availability of the Information would be contrary to local law or regulation. If you have access to the Information it is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction and it is recommended an investor first obtain appropriate legal, tax, investment or other professional advice prior to acting upon the Information. Coronation Asset Management (Pty) Limited (regulated by the Financial Services Board of South Africa) or one of its affiliated entities (together “Coronation”) is the investment manager to the Funds. Coronation Asset Management (Pty) Limited is a subsidiary company of Coronation Fund Managers Limited, a company incorporated in South Africa and listed on the JSE (ISIN: ZAE000047353). The Information is for information purposes only and does not constitute or form part of any offer to the public to issue or sell, or any solicitation of any offer to subscribe for or purchase an investment in the Funds, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract for investment in the Funds. Any such offer shall only be made pursuant to the offering material regarding the Funds. The Funds are subject to management, administration and performance fees. Past performance is not necessarily a guide to future performance. Investors may not receive back the full amount invested and may suffer capital loss. Investments in the Funds may not be readily realisable. Opinions expressed in this document may be changed without notice at any time after publication. Nothing in this document shall constitute advice on the merits of buying and selling an investment. All income, capital gains and other tax liabilities that may arise as a result of participating in this investment structure, remain that of the investor.
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