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Coronation recently informed the market that they are soft closing their Rand denominated global unit trust funds (feeder funds) to new discretionary investments. This includes top ups, switches and new debit orders into these funds for discretionary accounts.
Why are they doing this?
This is due to their management company approaching the 45% SARB Exchange Control Regulations limit making it necessary to take steps to manage available capacity in the best interest of all their investors, by ensuring that each Coronation fund can remain invested according to its specific objectives and mandate limits.
The temporary soft close is aimed at reducing new inflows from discretionary investors into the Coronation rand-denominated international funds while their capacity remains constrained.
Which funds are impacted?
| Fund |
Rating |
| Coronation Global Optimum Growth [ZAR] Feeder Fund | Tier 2 |
| Coronation Global Managed [ZAR] Feeder Fund | Tier 2 |
| Coronation Global Capital Plus [ZAR] Feeder Fund | Tier 2 |
| Coronation Global Strategic USD Income [ZAR] Feeder Fund | Tier 2 |
| Coronation Global Opportunity Equity [ZAR] Feeder Fund | Tier 2 |
| Coronation Global Emerging Markets Flexible [ZAR] Fund | Tier 1 |
| Coronation Global Equity Select [ZAR] Feeder Fund | Tier 2 |
How does this impact your model portfolios?
This change has no impact on model portfolio investments related to these funds. Coronation have explicitly allowed existing and new model portfolios to continue to invest in the funds and have engaged extensively with the various platforms to ensure that it will be business as usual for model portfolio clients wherever possible.
Coronation Closes Feeder Funds to New Discretionary Investments
26 Jun 2023