South Africa - Personal
There is no risk-free path for monetary policy – Jerome Powell
October 2024 · 3 min read
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Water security is one of South Africa’s most pressing challenges. We unpack the economic ripple effects of water shortages and explore regulatory shifts and infrastructure efforts aimed at improving water management.
Navigating investment opportunities in the wake of recent policy measures aimed at economic recovery
Quarterly Publication
October 2024
Under the thumb
The latest edition of Corospondent discusses the impacts of the Government of National Unity and declining interest rates on the South African economy and markets, the revival of the Chinese economy and investor interest in Africa, and insights into Quilter, an attractive stock in our portfolios. We also caution investors against accessing retirement income early under the new two-pot system and provide insights into the investment activities regarding a selection of our leading funds.
In a structurally growing market Quilter offers an attractive investment opportunity
"The Fed’s actions reverberate across every corner of the global financial system."— Ben Bernanke, Former Chairman of the Federal Reserve
Investing offshore
September 2024
Ensuring that your asset base is appropriately diversified
Demonstrating the benefits of strategic diversification into international markets, why it makes sense to consider doing so with a manager who has proven and established global capabilities across both emerging and developed markets, and how best to take action.
How economic reforms and the global race for resources are reshaping the continent’s future
It always seems impossible until it’s done.” – former President of South Africa, Mr Nelson Rolihlahla Mandela
Minimising early withdrawals is key to safeguarding your future financial well-being
Practical steps to cultivate inclusivity in financial services
Join Investment Specialist Naledi Makiwane as she discusses this award-winning international investment portfolio prioritising capital preservation and moderate growth.
Join Investment Specialist Bernard Wessels in exploring the Coronation Global Strategic USD Income strategy.
Join Investment Specialist Insaf Kamish as she explains this new route to accessing Coronation's range of well-established and proven international investment strategies.
Why building competence and influence matters more
Seven funds have now debuted on the JSE, with more to follow.
“Now is no time to think of what you do not have. Think of what you can do with what there is.” ― Ernest Hemingway, The Old Man and the Sea.
Last year in May, Marie covered South Africa’s water crisis, with a deep dive into the pain points and responsible agencies. This concern has not abated and has grave consequences for SA and its citizens. Our 2023 Stewardship report covers our ongoing analysis of SA’s water crisis and how our investment team is addressing it in the context of investments.
"The railway is one of the most potent factors in modern civilization, and its history is the history of human development." – John Moody, founder of Moody’s Investor Service
- “If you want peace, you don’t talk to your friends. You talk to your enemies.” – Archbishop Desmond Tutu
A focus on BYD Auto
Portfolio managers Karl Leinberger and Pallavi Ambekar explain what it means and how we are using it in the management of our multi-asset funds such as Coronation Capital Plus and Balanced Plus.
In retirement, achieving capital growth ahead of inflation and maintaining a stable income drawdown are crucial financial goals. Coronation Capital Plus, with its potential for high equity exposure and strategic capital protection, offers a solution for investors seeking sustained real returns above inflation.
Tune in as investment specialist Dorette Britts explains the benefits of protecting your purchasing power in retirement. Learn how to navigate inflation, longevity, and market risks to secure a stable income stream for life.
We discuss the outlook for loadshedding for the next two years. With new capacity coming online, when can we expect loadshedding to end?
We explore the reasons for the sustained streak without loadshedding and discuss what we can expect heading into winter.
I never won a fight in the ring; I always won in preparation – Muhammed Ali
Newest domestic IPO set to drive sustainable growth and performance.
The series concludes with a case study on Brazil, a discussion on what sets South Africa apart from the countries discussed in this series and broad guidelines for investors on asset allocation in so-called “worst-case scenarios”.
In episode two, we ask if domestic equities will always preserve value in cases of severe countrywide decline and major macroeconomic instability.
Pieter Koekemoer talks to the ‘cost’ of accessing the new ‘savings pot’ as part of the Two-pot Retirement System, effective September. While a welcome inclusion in the case of an emergency, its long-term impact may significantly diminish one's retirement savings and standard of living later in life.
Amidst a myriad of datapoints and a looming general election, what’s in store for the local economy heading into the second quarter of 2024? Join investment specialist Kim Deane and Economist Marie Antelme as they discuss the need-to-know highs and lows.
We recently conducted a client survey that revealed a crucial insight about the gap between investors' return expectations and market reality. For sound decision-making and sustained financial success we unpack what this may mean for investors, and in particular income fund investors.
Our first episode features the fascinating series of events that unfolded in Argentina, Lebanon and Venezuela respectively.
“The first rule of compounding: Never interrupt it unnecessarily.” – Charlie Munger
"Our steadfast commitment to excellence is exemplified in these consistent, industry-leading results."
And your annual tax incentives reminder.
“Anything worth saying is worth repeating.” – Humble the poet
The nitty gritty of running a business in developing countries.
Broaden your investment horizons with a true global manager
“The relationship between commitment and doubt is by no means an antagonistic one. Commitment is healthiest when it is not without doubt, but in spite of doubt.” Rollo May, The Courage to Create
Be without fear in the face of your enemies. Be brave and upright that God may love thee. Speak the truth always, even if it leads to your death. Safeguard the helpless and do no wrong. - A Knight’s Oath
“Nothing is more obstinate than a fashionable consensus. ” - Margaret Thatcher, British Prime Minister, 1979 - 1990
Assessing asset class performance in weak state regimes
Nothing short of decisive action will do.
It’s understandable that in times of high interest rates, investors are attracted to the ‘safety’ of cash or fixed-rate term deposits, but over the long term, it is equities that will provide the returns that will beat inflation. Watch now to find out why.
How to maximise your potential returns and reduce costs and taxes over time to secure your retirement, build wealth, and enable your investments to grow tax-free.
Watch Pieter Koekemoer, Coronation’s Head of Personal Investments Business, as he explains why Retirement Annuities (RAs) offer even more attractive benefits going into the new year and how to avoid non-investment risks that can impact your financial security.
The opportunities and challenges of rolling out a key regulatory reform.
Actions to protect your personal information and devices
“Morality, it could be argued, represents the way that people would like the world to work, whereas economics represents how it actually does work.” – Stephen Dubner, journalist and co-author of Freakonomics
We explain why we don't hold PGM shares in our portfolios.
He who is not prepared today, will be less so tomorrow – Ovid
The global energy mix is changing and presenting investment opportunities.
Global bond rout puts local bonds under pressure amidst a deteriorating fundamental backdrop.
The global energy mix is changing and presenting investment opportunities.
Global bond rout puts local bonds under pressure amidst a deteriorating fundamental backdrop.
Understanding your chosen fund’s risk and return targets is key.
Content in collaboration with Smart About Money.
Neil Padoa, Head of Global Equities talks about the opportunities presented in volatile markets and how the Coronation Global Managed Fund is well positioned to deliver strong returns over the long term.
Investment Specialist Kim Deane explains how the Coronation Global Managed Fund is designed as a single offshore solution for the majority of investors. Its ability to invest across a variety of listed asset classes provides it with the means to deliver solid risk-adjusted returns for long-term investors.
Investment Specialist Amika Gordhan talks to the importance of offshore in an investor’s total portfolio and that while the increased exposure (45%) achieved through a balanced fund may be enough, for many additional exposure is essential. Investing offshore has never been as accessible as it is today, no matter your financial position. All it takes is $500.
Together with the attractive opportunities we are finding in global fixed income markets today, we believe Coronation Global Capital Plus offers a compelling collection of assets suited to the needs of conservative international investors.
And why it is not too late to remedy?
Over the years, I’ve come to view complaints as opportunities rather than obstacles. - Guy Winch, from The Squeaky Wheel
Mapping the way forward.
Coronation CEO, Anton Pillay shares insights with the youth of 2023.
No one wants to risk running out of money, and certainly not in retirement. We unpack three key considerations in mitigating against these risks.
See how our carefully balanced risk-conscious approach has delivered significant investment returns for over two decades.
We look at the opportunity set offered by the JSE and why the prospects remain positive for the patient investor.
For investors with a long time horizon and a global outlook.
“All the water that will ever be is, right now.” – National Geographic
“A survival mindset requires optimism about the future, but also being paranoid about what will prevent you from getting to the future” - Morgan Housel
The same, but on steroids.
Experiences are trumping consumerism.
No margin for error
What just happened?
2022 saw a dramatic resetting of interest rates, creating an opportunity set in global fixed income markets that we believe investors should be positioning their portfolios for.
Are you considering a cash investment due to risk and the need for quick access to your savings? Watch Portfolio Manager Mauro Longano as he takes us through a few compelling alternatives for cash investors. You may want to opt for a Fixed Income Fund, which will work harder than simply leaving your money in a bank account.
Amika Gordhan, unpacks why balanced funds are so popular with the 5 Benefits of Balanced Funds and how the Coronation Balanced Fund has delivered superior returns at a reduced level of risk.
Suhail Suleman, joint-Head of Global Emerging Markets Research and Portfolio Manager, explains why investors shouldn't dismiss Saudi Arabia as just another petrostate. With its #Vision2030 firmly underway, the region has a lot to offer, from its recent EM growth to the rise of investment opportunities and the key businesses to look at for attractively priced entry points.
And your annual tax incentives reminder.
"Investing for the long term requires patience and dedication, but the rewards are worth the wait." – Quote by generative artificial intelligence engine GPT-3
Hope must make way for action.
A valid question that deserves a thorough answer.
Add compounding to the tax you don’t pay.
“When written in Chinese, the word ‘crisis’ is composed of two characters. One represents danger and the other represents opportunity.” – John F. Kennedy
Moving away from being just another petrostate.
Identifying the future winners in aviation presents attractive investment opportunities.
An assessment of current economic conditions and global and local outlook for 2023.
A conversation about local and global equity market valuations
While we are cognisant of the risks, we believe a handful of carefully chosen businesses in China currently offer compelling returns for long-term investors.
Remember your own tolerance for risk
SA bonds continue to hold their worth for investors
Listed infrastructure is a key beneficiary of rising inflation.
Maintaining an equity bias and following diversification principles provide the foundation for building strong investment portfolios. - David F. Swensen, CIO, Yale and philanthropist
A low-risk, value-creating allocation of capital
A challenging balance between inflation and growth.
Coronation’s evaluation of the energy plan concludes that loadshedding can reduce dramatically within four years.
Unfortunately not, our analysis shows
How we take advantage of return opportunities while being conscious about risk
Leaning into a once-in-a-decade dislocation between price and value.
A polycrisis has sent global markets sharply down; and there is opportunity to be found.
In the short run, the market is a voting machine, but in the long run, it is a weighing machine.
Central bank action has had a profound effect on risk sentiment, we take a look at how global bond markets have responded.
A look at rising inflation and interest rates and the tough decisions central banks need to make as remedy.
The case for (only the best) long duration technology businesses.
Taking money offshore may be popular, but, at present, South African opportunities are still more attractive.
Discussion on the drivers of global inflation and how our portfolios are positioned to meet this challenge.
Current valuations relative to history point to attractive future return prospects.
"Long-term consistency trumps short-term intensity" – Bruce Lee, martial artist, actor, philosopher.
“The president can't change the country on his own. But what can he do? He can give an example.” - Volodymyr Oleksandrovych Zelenskyy; President of Ukraine
While economic recovery challenges still abound, the likelihood of South Africa tumbling into a debt trap within the next five years has, thankfully, diminished.
‘In the midst of every crisis, lies great opportunity.’ - Albert Einstein
This article was originally published by CityWire In the latest of the series of interviews with industry veterans, Stephen Cranston talks to Neville Chester, a senior Coronation portfolio manager.
Key take-outs from the Budget announcement and your annual tax incentives reminder.
Follow our ‘first in, last out’ approach.
A combination of domestic assets and global equities will help funds achieve their real return expectations
Long-term thinking and rigorous research needed to spot opportunities.
“The fact that some choice is good doesn’t necessarily mean that more choice is better.” – Barry Schwartz in The Paradox of Choice: Why More is Less
Mounting risk to the fiscal health of indebted emerging markets will require careful navigation.
But SAGBs might still fare better than expected
An attractive, growing sector in both Eastern and Western Europe.
An attractive new add to our portfolios.
While 2021 was a strong year for investors, we still see opportunities for those who get started this year.
How Coronation Top 20 fund has benefited investors.
“In the midst of chaos, there is also opportunity.” – Sun Tzu
Understanding risk profiles and having realistic return expectations are key.
It’s a no-brainer
It’s not just about Tencent, games and China
Neil Padoa is interviewed by Simon Brown, part of the Moneyweb Now podcast series.
But bond yields continue to make up for underlying risks
Unpacking the recent regulatory interventions
“We demand rigidly defined areas of doubt and uncertainty!” – Douglas Adams, The Hitchhiker’s Guide to the Galaxy
Three fund anniversaries highlight the value created for investors.
A well-priced opportunity and inexpensive insurance against risks.
Understanding the risks and return opportunities remains crucial
Global Frontier Markets
“Give me accountability, I’ll give you peace.” – Abhijit Naskar, neuroscientist and author
Improving local economic outlook
But open minds and ability to shift positions are key
Passing breeze or real winds of change?
Shifting growth dynamics and inflation uncertainty
Finding value in complexity
Cheap insurance at a time of heightened risk
Celebrating the anniversaries of three of our multi-asset funds
Tips for young people to get ahead in tough times
Questions and answers
– an excerpt from the Coronation 2020 Stewardship Report
“In the past, censorship worked by blocking the flow of information. In the twenty-first century, censorship works by flooding people with irrelevant information. In ancient times having power meant having access to data. Today having power means knowing what to ignore.” – Yuval Noah Harari
“Your perception may not be my reality.” – Aporva Kala, author and philosopher
Inflation – it’s time to pay attention
Confidence in recovery gains momentum
Promising long-term growth seen in emerging equity markets
But SAGBs are still an attractive investment
New accounting standard adds complexity, but also presents a competitive advantage
“The storm only comes to teach you how to skillfully sail your ship.” – Matshona Dhliwayo, author and philosopher
From volatility through rebound to recovery
“Uncertainty is the only certainty there is. Knowing how to live with insecurity is the only security.” – Mathematician John Allen Paulos
A growth opportunity in the lacklustre retail space
Are long-term investors positioned for the future?
But SAGBs and ILBs still offer attractive opportunities, despite economic challenges
Growth potential at MMH undervalued
Good intentions and a renewed commitment to growth are not enough to make government's financial position sustainable
Post-pandemic recovery in the balance of vaccines and a return of confidence
“Throughout human history, in any great endeavour requiring the common effort of many nations and men and women everywhere, we have learned – it is only through seriousness of purpose and persistence that we ultimately carry the day. We might liken it to riding a bicycle. You stay upright and move forward so long as you keep up the momentum.” – Ban Ki-moon
Bloated merchant acquirers face disruption in the Brazilian market spac
Vulnerabilities increase the risk of longer-term damage
Transformation through green initiatives and new demand sources
Local opportunity amidst global uncertainty
A history of consistent alpha generation in local and global markets
Bloated merchant acquirers face disruption in the Brazilian market spac
“If you want to lift up humanity, empower women. It is the most comprehensive, pervasive, high-leverage investment you can make in human beings.” – Melinda Gates, in her book, “Moment of Lift”
“When the world is running down, you make the best of what’s still around.” – Musician and actor, Gordon Sumner (aka Sting)
- an excerpt from the Coronation 2019 Stewardship Report
“If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.” – Economist John Maynard Keynes
“Only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depends on the ideas lying around.” – Economist Milton Friedman
We can’t afford not doing better
Investment opportunities in the eyecare industry
South African investor heaven or hell?
“The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.” – Benjamin Graham, The Intelligent Investor
A chance to add good quality domestic businesses to your portfolio
Covid-19 economic shock and stimulus reflected in financial markets
“Battles are never the end of the war” – former US President James Garfield
Revisiting the investment case
“Sorrow is better than fear. Fear is a journey, a terrible journey, but sorrow is at least an arrival. When the storm threatens, a man is afraid for his house. But when the house is destroyed, there is something to do.” – Alan Paton, author and activist
A butterfly flaps its wings in Wuhan, China
A brutal quarter for financial markets
“Trust is undeniably linked to doing what is right. Ethical drivers such as integrity, dependability and purpose drive the trust capital of business.” – 2020 Edelman Trust Barometer
Let us not waste another crisis
“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese proverb
Significant opportunities may underlie a bleak outlook
What did this programme really achieve?
A gem within the small- and mid-cap space
“A promise is a cloud; fulfilment is the rain.” – Arab Proverb
IPO learnings from frontier markets
Restoring confidence is key to growth recovery
Cable operators leading US broadband internet momentum
Inverted yield curves, negative bond yields, liquidity everywhere and not a drop to drink
But depressed growth and further Eskom support weigh heavily on government
A weighty issue?
The price is right (or at least it feels that way)
Our purpose in numbers
Transformative policy paper needs strong implementation
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” – Shelby M.C. Davis
When desirability becomes necessity
The trade war between the US and China is not ending anytime soon, notwithstanding the efforts of presidents Trump and Xi to make nice on the sidelines of the Osaka G20 Summit.
How sports content (and fast cars) became frontrunners in the media content race
The economic cost of rent seeking
World economy balancing on regional tensions and precarious geopolitical alliances
“It does not matter how slowly you go, as long as you do not stop.” – Confucius
Only deep, proprietary research sharpens analysis, providing the necessary focus to look through the noise
Where the frontiers of consumer need, technical innovation and pragmatic regulation meet
Government’s management of the power crisis will be telling of its broader capacity for reform
A good quarter for investors, but a tough one for South Africa
"Speculation … allows you to put your emotions first, whereas investment gets emotions out of the picture.” – John C. Bogle
Reflecting on a tough year
But overcoming deeply rooted economic problems remains challenging
Reaping the rewards of pension reform
“He who indulges in empty fears earns himself real fears. We should always allow some time to elapse, for time discloses the truth.“ – Lucius Annaeus Seneca
“The trouble is, you think you have time.” – Gautama Buddha
But South African bonds still offer a bulwark against global policy normalisation
The way in which financial markets respond to US rate expectations is important
Responsible investing involves constructive, behind-the-scenes communication
The element of surprise is common in a system where so many decisions depend on forecasts of the future.” – Iconoclastic economist Frank Knight, mid-20th century
China’s competitive education system drives strong growth
Tighter financial conditions are the greatest near-term threat to global growth
How companies avoid obsolescence through innovation
It was always going to get messy
Despite new vehicle technology, global car sales still drive demand
Spotify and Apple Music lead the revival of the recorded music industry
The value of proprietary, deep-dive research
A homegrown success story
Addressing the future for women
South Africa’s prospects are looking better, but durable change needs vision and consensus
Earning its stripes
But after riding the wave of optimism, we are now cautious of South African bonds at current levels
Thriving in a highly regulated industry
What you see is not always what you get
How worried should investors be?
“You can’t always get what you want, but if you try sometimes you just might find you get what you need.” – The Rolling Stones
Land reform under new leadership – both risk and opportunity
We continue to focus on valuation to find attractive opportunities
The relevance of auditors in a post-financial scandal world
Sometimes the truth is stranger than fiction
2017 proved to be a strong year for most asset classes and our portfolios performed well over the period
Valuations are high and uncertainty is increasing
Renewed optimism and contained inflation could benefit government bonds
The next generation of big bets
Well positioned in an evolving environment
What now that the kings are gone?
Cyril Ramaphosa’s ANC needs to save South Africa from economic déjà vu
Real change will depend on the will to fight
Enough already!
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