Global (excl USA) - Institutional
Global Emerging Markets Equity Strategy
INSTITUTIONAL
INVESTMENT OBJECTIVE:
The Coronation Global Emerging Markets Equity Strategy provides access to the best investment opportunities in Global Emerging Markets. It aims to deliver capital growth through a focused equity portfolio of securities of companies based in emerging markets or that derive a significant portion of their business from emerging economies. The objective is to outperform the MSCI Emerging Markets Index over 5 years and longer periods.
Coronation’s investment philosophy aims to produce outperformance by focusing exclusively on the long term. We conduct our own research to determine what a share is worth (its ‘fair value’), and only invest if the current price is sufficiently below this level, thereby offering some margin of safety. We focus on what a business will earn in a ‘normal’ environment over the long term (which is often many years from now) and what investors, in our view, should be willing to pay for such an earnings stream today. This allows us to ignore short term ‘noise’, which is a key competitive advantage since shares often trade on near-term earnings prospects instead of long term earnings power. Given the large investable universe, we have a preference for above-average businesses – those that exhibit a combination of key factors such as sustainable competitive advantage, pricing power, decent returns on capital and high cash generation abilities – but our decision to invest will always be based on whether there is sufficient margin of safety relative to the risks of each investment case. Our portfolios are fairly concentrated (50-60 stocks) and reflect our high-conviction ideas prominently. They are constructed without any reference to the benchmark, so short term portfolio returns will differ materially - whether positive or negative - from those of the benchmark. Over a more meaningful performance measurement period of at least five years, our focus on owning only undervalued shares should, in our view, deliver performance in excess of the benchmark. The primary method of risk control is only owning stocks that trade well below fair value to ensure there is no permanent loss of capital from owning overvalued shares. Additionally, our portfolios are constructed such that there is no excessive exposure to any one country, industry or other single identifiable factor that can have an unexpected and outsized impact on portfolio returns.
The above graph is provided for illustrative purposes only. It reflects composite performance of the strategy and is gross of fees.
| STRATEGY RETURNS GROSS OF FEES | |||
|---|---|---|---|
| STRATEGY | BENCHMARK* | OUTPERFORMANCE | |
| Since Launch (unannualised) | 120.9% | 57.3% | 63.6% |
| Since Launch (annualised) | 5.0% | 2.8% | 2.2% |
| Latest 10 years (annualised) | 1.6% | 3.2% | (1.6)% |
| Latest 5 years (annualised) | 0.5% | 3.2% | (2.7)% |
| Latest 3 years (annualised) | (3.7)% | (1.3)% | (2.4)% |
| Latest 1 year | 14.7% | 11.9% | 2.8% |
| Year to date | 11.0% | 7.7% | 3.3% |
| Latest 6 months | 1.9% | 4.1% | (2.2)% |
| Latest 3 months | 4.0% | (1.7)% | 5.7% |
| Month | (1.9)% | (3.6)% | 1.7% |
* MSCI Emerging Markets Total Return (net) Index (Bloomberg ticker: NDUEEGF)
The performance shown is gross of fees. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. The volatility of the MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index) represented above may be materially different from that of the Global Emerging Markets Equity Strategy. In addition, the holdings in the accounts comprising the Strategy may differ significantly from the securities or components that comprise the MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index). The MSCI Daily TR Net Emerging Markets USD (NDUEEGF Index) has not been selected to represent an appropriate benchmark to compare the Global Emerging Markets Equity Strategy's performance, but rather is disclosed to allow for comparison of the Strategy's performance to that of a well-known and widely recognized index.
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Coronation Asset Management (Pty) Limited, Coronation Investment Management International (Pty) Limited, Coronation Alternative Investment Managers (Pty) Limited (regulated by the Financial Sector Conduct Authority of South Africa) or one of its affiliated entities (together “Coronation”) is the investment manager to the Funds. The Material is for information only and does not constitute or form part of any offer 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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- persons or entities referred to in Point 2°, Section II of Article L.411-2 of the Monetary and Financial Code may take part in the transaction solely for their own account, as provided in Articles D. 411-1, D. 411-2, D. 734-1, D. 744-1, D. 754-1 and D. 764-1 of the Monetary and Financial Code; and
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Notice to Investors in the United Kingdom: The Material has been prepared by Coronation Asset Management (Proprietary) Limited and/or Coronation Investment Management International (Proprietary) Limited and/or Coronation Alternative Investment Managers (Pty) Limited, authorised Financial Services Providers in South Africa and approved by Coronation International Limited (“CIL”) for the purposes of section 21 of the Financial Services and Markets Act 2000. CIL is authorised and regulated by the Financial Services Authority (“the FCA”). To the extent that the Material document is issued in the United Kingdom, it is being issued to persons who are professional clients or who are exempt investors in accordance with the FSMA 2000 (Promotion of Collective Investment Schemes Exemptions Order 2005). Many of the protections provided by the UK regulatory structure may not apply to investments in any of the Coronation funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. The Material does not purport to be all inclusive or to contain all the information which prospective investors may require. The approval by CIL is limited to the information contained in the Material. The Material is not an advertisement and it is not intended for public use or distribution. The Material does not constitute advice on the merits of buying or selling an investment nor does it form part of any offer to issue or sell, not any solicitation of any offer to subscribe for or purchase, shares in any fund managed by Coronation, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract for shares in any fund. It is recommended that an investor first obtain the appropriate legal, tax, investment or other professional advice and formulate an appropriate investment strategy that would suit their individual risk profile prior to acting upon such information. Past performance is not necessarily a guide to future performance.
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The interests in the Funds offered hereby have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any US state. The interests in the Funds will be offered and sold pursuant to the exemption provided by Section 4(2) of the Securities Act and Regulation D thereunder and similar exemptions under the securities laws of the US states. The Funds will not be registered as an investment company under the United States Investment Company Act of 1940, as amended (the “Investment Company Act”). Consequently, investors in the Funds will not be afforded the protections of the Investment Company Act.
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