Manager Research
all members of our manager research team have over ten years of investment experience.
Rating newly launched funds creates a challenge for us. On the one hand, we would prefer to see longer term evidence of the fund in action so that we reduce our own ‘rating risk’. On the other hand, the fund is open to the investing public and a qualitative opinion can be useful to investors considering the fund. We don’t have any preset horizons around which a fund must be open before we will conclude a rating, if it is open for business, it is open for rating.
Given that background, rating this fund presented an additional challenge: Coronation is a business with an established approach to investing and has succeeded in creating a functional and integrated investment process in SA. For global funds however, we need to make sure we are holding the fund up to a global standard. This is increasingly important as SA’s borders open to more and more global fund offerings available in the market. To date we have covered over 80 global equity funds (FSB and non-FSB registered) such as this, across varying styles and processes. The common factor is that global investing is complex and the odds of success are low. For this reason the bar is very high on global funds – for a top Tier 1 rating we require exceptional evidence of investment process in action with all elements of the fund, team and business well developed and demonstrable in their ability to add value. In this case, we felt that there is still some way to go in the funds development before we are able to assign a higher Tier rating.
Use the links on the right to view the rating report.
Rating the Coronation Global Select Equity Fund
8 Dec 2015