Coronation Global Emerging Markets

[goofball]

Hey guys.

Does anybody have some experience with investing in this?
To the untrained eye it looks like returns of over 10%.
Is that true? And how risky area these coronation funds?

 

[Messugga]

Past performance isn't an indication of future performance.

Read up on how unit trusts work and then read the fund's fact sheet. That should answer everything you need to know (even how risky it is, if memory serves). If you're unfamiliar with investing in unit trusts and the like, I'd suggest speaking to a financial advisor.

 

[goofball]

Past performance isn't an indication of future performance.

Read up on how unit trusts work and then read the fund's fact sheet. That should answer everything you need to know (even how risky it is, if memory serves). If you're unfamiliar with investing in unit trusts and the like, I'd suggest speaking to a financial advisor.

Slight problem there as I'm not living in South Africa at the moment.

Just looking for some basic information before I make any calls.

 

[bchip]

An ETF is basically buying into a group of shares by buying 1 product.
So you buy the (eg) Resource fund and it goes out and buys the (eg) top10 resource companies.
This all depends on the mandate of the fund, for instance Satrix 40 buys the 40 biggest companies by market cap in SA.
Satrix Resi buys the biggest resources companies, Fini buys the financial sector. etc.

The advantage of an ETF is that your costs are low, and your shares are picked for you.
So when you buy or sell Satrix Top40 you just pay once, instead of buying/selling 40 different shares.
Other people are also managing the buying and selling for you (for a fee of 2-5% per annum)

As far as Coronation goes, its a listed company, quite well known.
But as Messugga said, past performance doesnt indicate future performance.
Your best bet is really to invest in these well known funds when prices are low. omo.

 

[goofball]

An ETF is basically buying into a group of shares by buying 1 product.
So you buy the (eg) Resource fund and it goes out and buys the (eg) top10 resource companies.
This all depends on the mandate of the fund, for instance Satrix 40 buys the 40 biggest companies by market cap in SA.
Satrix Resi buys the biggest resources companies, Fini buys the financial sector. etc.

The advantage of an ETF is that your costs are low, and your shares are picked for you.
So when you buy or sell Satrix Top40 you just pay once, instead of buying/selling 40 different shares.
Other people are also managing the buying and selling for you (for a fee of 2-5% per annum)

As far as Coronation goes, its a listed company, quite well known.
But as Messugga said, past performance doesnt indicate future performance.
Your best bet is really to invest in these well known funds when prices are low. omo.

Wow! Thank you very much for your insight!

I actually have some funds in one already. Just looking at other options now as well.

Would you say rather look at the Satrix ones or look more into the Coronation emerging markets one?

 

[Messugga]

Wow! Thank you very much for your insight!

I actually have some funds in one already. Just looking at other options now as well.

Would you say rather look at the Satrix ones or look more into the Coronation emerging markets one?

Satrix is pretty expensive currently. Coronation might be a better bet.

 

[bchip]

Thats a difficult question, maybe because its not looking at it in the right way....

What I mean by that is that both companies are quite reputable (Satrix is ABSA/Barcleys and Coronation is also well known)
Where the "devils in the detail" basically refers to what do you believe is at a discount right now,
and what will be higher in the future. For instance if you believe "Resources are undervalued" then Satrix Resi,
if you believe Emerging Markets (Russia, India, South Africa, etc) are cheap right now then you should go with
Coronation Emerging Markets fund.

Thats where the trouble really starts, what you think is cheap

I cant really tell you where to invest, those guys should be able to advise you better,
but personally I wouldnt invest in anything right now, the upside is limited at this price (but I could be wrong).
Best advise I can give if is do some homework, wait for a discount on the market (youll know when its there,
when everyone tells you NOT to buy) and once the market is at a discount again then invest in the selected fund.
Contribute every 1 or 3 months and hold for 5 years...Thats the formulae that works the best.

 

[goofball]

So where does Stanlib fit into all of this?

 

[Messugga]

So where does Stanlib fit into all of this?

Stanlib has linked with Standard Bank.

 

[supersunbird]

If you want exposure to emerging markets then that's where you invest in it, no point in Satrix this or that if they don't have a product giving you the exposure you want. So you must decide what you want and then find a suitable to your needs products/s to invest there. It will be a long term investment and can add extra value if the Rand falls in value or loose value if the Rand strengthens a lot. Its risky, because its a equity fund and that's how it is..

There is an Emerging Markets ETN from Deutsche Bank http://www.etfsa.co.za/Factsheets/db_emerg_market_etn_jan2014.pdf. With a ETN the fund doesn't own the underlying shares, its basically a promise by Deutsche Bank to pay the performance.

I prefer my Coronation Global Emerging Markets unit trust, good online interface.