South Africa - Personal
Preservation Fund
The Coronation Preservation Pension Fund and Coronation Preservation Provident Fund are suited for people changing employment and who have already built up retirement savings as a prior member of an occupational pension or provident fund.
The purpose of these funds is to preserve the tax deductions previously granted on retirement fund contributions and to continue to grow the value of your retirement assets until retirement. Preserving the tax status will maximise the tax-shield, thus maximising the tax-free retirement lump sum available. These funds are used when there is a change in employment (as a result of retrenchment, resignation or termination) or the closing of an occupational retirement fund.
The Coronation Preservation Funds are flexible, cost-effective and transparent. They are designed to allow you the flexibility to switch between investment options as your circumstances change. We do not charge initial fees, we subsidise our annual administration fee of 0.2% (excluding VAT) and the fees of each of the underlying unit trust funds are fully disclosed
The underlying investment options are Coronation's range of top-performing unit trusts which have consistently delivered strong investment returns since inception. This consistency of investment performance is reflected in Coronation being awarded numerous local and international investment performance accolades.
You can access the assets held in the Coronation Preservation Pension Fund and Coronation Preservation Provident Fund at each fund's stipulated retirement date. One withdrawal, which will be taxed at your average rate, is allowed before retirement.
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INVESTMENT OPTIONS
You may select from a wide range of Coronation unit trust funds. To simplify the investment decision, we highlight the flagship funds:
- Coronation Strategic Income Fund
- Coronation Balanced Defensive Fund
- Coronation Capital Plus Fund
- Coronation Balanced Plus Fund
We believe these funds are best suited to growing and maintaining retirement benefits over the long term for the majority of investors.
When selecting the underlying unit trust funds please ensure that the combination complies with Regulation 28 of the Pension Funds Act.
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REGULATION 28 COMPLIANCE
The Coronation Preservation Funds are required to comply with Regulation 28 of the Pension Funds Act and Exchange Control legislation. Accordingly, the funds require that your investment complies with the following limits: a maximum exposure of 75% of the investment amount to equity investments; 45% to international investments; 25% to property.
Investing in the Balanced Plus Fund is the simplest way to achieve that using Coronation's best investment views. Alternatively you may select from a wide range of Coronation unit trust funds and use our online calculator to ensure that you chose a combination of investment options that complies with these limits.
Coronation Client Services monitor compliance with these limits at the time of your initial investment and on each transaction thereafter.
All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. As a result thereof, there may be limitations as to the appropriateness of any information given. It is therefore recommended that the reader first obtain the appropriate legal, tax, investment or other professional advice and formulate an appropriate investment strategy that would suit the risk profile of the reader prior to acting upon information. Neither Coronation Fund Managers Limited, Coronation Management Company (RF) (Pty) Ltd nor any other subsidiary of Coronation Fund Managers Limited (collectively “Coronation”) is acting, purporting to act and nor is it authorised to act in any way as an adviser. Coronation endeavours to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. Coronation does not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only. Unit trusts should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance. Unit trusts are allowed to engage in scrip lending and borrowing. Performance is calculated by Coronation for a lump sum investment with income distributions reinvested. All underlying price and distribution data is sourced from Morningstar. Performance figures are quoted after the deduction of all costs (including manager fees and trading costs) incurred within the fund. Note that individual investor performance may differ as a result of the actual investment date, the date of reinvestment of distributions and dividend withholding tax, where applicable. Where foreign securities are included in a fund it may be exposed to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in exchange rates may cause the value of underlying investments to go up or down. The Coronation Money Market fund is not a bank deposit account. The fund has a constant price, and the total return is made up of interest received and any gain or loss made on any particular instrument, in most cases the return will merely have the effect of increasing or decreasing the daily yield, but in the case of abnormal losses it can have the effect of reducing the capital value of the portfolio. Excessive withdrawals could place the fund under liquidity pressures, in such circumstances a process of ring-fencing of redemption instructions and managed pay-outs over time may be followed. A fund of funds invests in collective investment schemes that levy their own fees and charges, which could result in a higher fee structure for this fund. A feeder fund invests in a single fund of a collective investment scheme, which levies its own charges and could result in a higher fee structure for the feeder fund. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment Schemes Manager approved by the Financial Sector Conduct Authority in terms of the Collective Investment Schemes Control Act. Unit trusts are traded at ruling prices set on every day trading. Forward pricing is used. For Domestic Unit Trust Funds and Tax Free Investments, including rand-denominated International Unit Trust Funds, fund valuations take place at approximately 15h00 each business day, except at month end when the valuation is performed at approximately 17h00 (JSE market close). For these Funds, instructions must reach the Management Company before 14h00 (12h00 for the Money Market Fund) to ensure same day value. For Offshore Unit Trust Funds that are denominated in a foreign currency, fund valuations take place at approximately 17h00 each business day (Irish Time) and instructions must reach the Management Company before 12h00 (SA Time) to ensure the value of the same business day. For Retirement Products, fund valuations take place at approximately 15h00 each business day, except at month end when valuation is performed at approximately 17h00 (JSE market close). For these Products, instructions must reach the Management Company before 14h00 to ensure the value of the next business day. Additional information such as fund prices, brochures, application forms and a schedule of fund fees and charges is available on our website, www.coronation.com. Coronation Fund Managers Limited is a Full member of the Association for Savings & Investment SA (ASISA). Coronation Asset Management (Pty) Ltd (FSP 548), Coronation Investment Management International (Pty) Ltd (FSP 45646) and Coronation Alternative Investment Managers (Pty) Ltd (FSP 49893) are authorised financial services providers. Coronation Life Assurance Company Limited is a licenced insurer under the Insurance Act, No.18 of 2017.