Coronation RA people: how happy are you?

[sandwitch]

I'm springcleaning my finances and I'm looking to move my RA from Allan Gray to Coronation.
Those of you with Coronation, how happy are you with your RA with them?

 

[zerocool2009]

I'm springcleaning my finances and I'm looking to move my RA from Allan Gray to Coronation.
Those of you with Coronation, how happy are you with your RA with them?

I dont invest with Coronation directly. I have a few coronation funds, and they just stopped paying dividends!

 

[supersunbird]

I dont invest with Coronation directly. I have a few coronation funds who just stopped paying dividend!!

It must the companies making up the funds who stopped paying dividends. The funds pas on the dividends, so the fund can't "withhold" them. At best you can moan "why did the managers invest in companies that would stop paying dividends?", but then you must point at who in 2019 predicted an international lock down of economies in 2020 and invest with that person.

 

[zerocool2009]

It must the companies making up the funds who stopped paying dividends. The funds pas on the dividends, so the fund can't "withhold" them. At best you can moan "why did the managers invest in companies that would stop paying dividends?", but then you must point at who in 2019 predicted an international lock down of economies in 2020 and invest with that person.

I am talking one specific coronation fund (via my stanlib portfolio).

 

[supersunbird]

I'm springcleaning my finances and I'm looking to move my RA from Allan Gray to Coronation.
Those of you with Coronation, how happy are you with your RA with them?

I didn't feel that being with AG was worth if for that platform fee they charge so I put the bit I had in a AG RA, into the Coronation RA I have, since you pay no extra fees besides the internal fund fees.

 

[supersunbird]

I am talking one specific coronation fund (via my stanlib portfolio).

Yes, and the companies in that fund stopped paying dividends (as did most other companies this year).

 

[supersunbird]

Here are my returns over the last 4 quarters of (7 Coro funds in my RA), basically I am around where I was 1 Oct 2019:

01 October 2019 to 31 December 2019
4.77%

01 January 2020 to 31 March 2020
-20.05

01 April 2020 to 30 June 2020
18.15

01 July 2020 to 30 September 2020
1.48

 

[sandwitch]

I didn't feel that being with AG was worth if for that platform fee they charge so I put the bit I had in a AG RA, into the Coronation RA I have, since you pay no extra fees besides the internal fund fees.

It's the lack of returns that are getting to me - although AG's fees did have me comparing them to 10x's briefly - AG doesn't seem to be as good as they were a decade ago.

 

[supersunbird]

It's the lack of returns that are getting to me - although AG's fees did have me comparing them to 10x's briefly - AG doesn't seem to be as good as they were a decade ago.

Well, you will find the lack of returns with most funds since SA market has been pretty flat the past 5 years. You can control fees though, so maximize the small return you do get.

 

[^^vampire^^]

Have RAs with AG, Coronation, 10x and Sygnia with abt 100k in each. They've all been pretty stagnant over the last 2 years or so. The problem is the SA economy more than the funds. At this point I'd be putting money offshore if I was still earning rands. I doubt there is much in SA that will be making money grow there.

 

[zerocool2009]

Have RAs with AG, Coronation, 10x and Sygnia with abt 100k in each. They've all been pretty stagnant over the last 2 years or so. The problem is the SA economy more than the funds. At this point I'd be putting money offshore if I was still earning rands. I doubt there is much in SA that will be making money grow there.

I had a look at my funds oversea’s within my RA’s.... they grew the best by far! But its peanuts because of the REG 28 rule! I read someone said stop RA contribution and invest overseas!

 

[sandwitch]

But it's like Supersunbird said: they're much of a muchness but you can control the fees. And because my funds are already locked into an RA it's better I move them to another company that's (hopefully) slightly less stagnant, with cheaper fees.

Esp. because I also don't want to take the hit of taking out the money entirely.

 

[zerocool2009]

But it's like Supersunbird said: they're much of a muchness but you can control the fees. And because my funds are already locked into an RA it's better I move them to another company that's (hopefully) slightly less stagnant, with cheaper fees.

Esp. because I also don't want to take the hit of taking out the money entirely.

You cant take it out. You can, but it must be less than R7000 I think.

Rule 1: max your tfsa’s

 

[supersunbird]

I was checking my statements, I had put R49 713.59 into Coronation Resources fund in my RA somewhere around June 2019 (when I moved my AG RA money to Coronation RA and it was on R73 107.49 30 Sept 2020. That's like a 47% return! Damn, I should have put a bigger chunk into the Resources fund.

 

[RandomGeek]

I'm springcleaning my finances and I'm looking to move my RA from Allan Gray to Coronation.
Those of you with Coronation, how happy are you with your RA with them?

I like Coronation - their funds may not be the cheapest, but it is a proven company. Their support is also really efficient. I also don't pay any fees outside of fund fees (no platform fees, no adviser fees). So all in all I would rate them from a Cost perspective lower than e.g. Sanlam/Old Mutual but more expensive than e.g. Sygnia. (Note mine are in Unit Trusts not specifically a RA but my comments are still applicable)

Regarding performance of the funds, this depends entirely on what you have. Currently mine are for year to date (after fund costs):

• Global Strategic USD Income ZAR Feeder - +18.8%
• Global Opportunities Equity ZAR Feeder - +10.7%
• JIBAR Plus - +4.6%

 

[sandwitch]

Rule 1: max your tfsa’s

It's the first thing I do!

@RandomGeek @supersunbird Your returns make me drool. But I feel like I should warn you, based on past experience, I'm going to move my RA across and the stock market will crash, or dip badly. I figure you've got 2 more weeks of happiness...

 

[RandomGeek]

It's the first thing I do!

@RandomGeek @supersunbird Your returns make me drool. But I feel like I should warn you, based on past experience, I'm going to move my RA across and the stock market will crash, or dip badly. I figure you've got 2 more weeks of happiness...

LOL my crystal ball is broken in terms of forecasting the future fund winners. Best of luck

 

[supersunbird]

It's the first thing I do!

@RandomGeek @supersunbird Your returns make me drool. But I feel like I should warn you, based on past experience, I'm going to move my RA across and the stock market will crash, or dip badly. I figure you've got 2 more weeks of happiness...

Haha, I wish, overall the returns have been flat, the gainers cancelling out the dogs.

Here is what has happened compared to what I have put in over the years:

Bond (R) - up a bit
Financial (A) - dropped a lot
Global Emerging Markets Flexible (ZAR) (P) - great gains
Global Equity Select (ZAR) Feeder (A) - great gains
Industrial (P) - flat, basically same amount as contributed
Property Equity (A) - value is half of what I have contributed
Resources (P) - super duper gains

 

[^^vampire^^]

I had a look at my funds oversea’s within my RA’s.... they grew the best by far! But its peanuts because of the REG 28 rule! I read someone said stop RA contribution and invest overseas!

My SA RAs slipped down and are increasing slowly again. Across them there's been maybe 2-4% over the last few years.

You need to strike a balance of tax deductions from RA contributions and investing overseas. I am kind of kicking myself for contributing to RAs over the years because I emigrated and it looks like they are going to lock up the RAs for 3 years before releasing as I can't get my FE done before Feb. My advice to anyone would be that if you are looking to emigrate rather put your money offshore now and make sure you are investing that which would be for retirement rather than spending it. I imagine the public sector retirement funds will be gone within the next 3 years or so and then they will target private retirements after that.

 

[zerocool2009]

My SA RAs slipped down and are increasing slowly again. Across them there's been maybe 2-4% over the last few years.

You need to strike a balance of tax deductions from RA contributions and investing overseas. I am kind of kicking myself for contributing to RAs over the years because I emigrated and it looks like they are going to lock up the RAs for 3 years before releasing as I can't get my FE done before Feb. My advice to anyone would be that if you are looking to emigrate rather put your money offshore now and make sure you are investing that which would be for retirement rather than spending it. I imagine the public sector retirement funds will be gone within the next 3 years or so and then they will target private retirements after that.

True fact that. Government is always one step ahead ... (or rather try to be)