Presented by Coronation

Why multi-asset funds keep offshore investing simple

Partner

 ·4 Dec 2019

Anyone who starts every new year off with ambitious resolutions knows how hard it is to stay committed to them. It is helpful to keep a simple, manageable approach to reaching your goals. The same goes for investing offshore. It’s easier to achieve your financial goals if you stay committed. And it’s easier to stay committed if you choose a multi-asset fund because you’ll have the comfort and ease of having a fund manager tasked with making the daily portfolio decisions for you.

Investing offshore is not a single event, it’s a journey

It’s wise to ignore the market sentiment of the day and instead focus on your long-term investment goals. The past does not predict the future, so the best approach is to appropriately diversify your risks across jurisdictions, geogra­phies, sectors and companies.

It’s easier to achieve your desired result if you remain committed

The average unit trust investor holds their investment for less than the recommended five-year minimum period. But the more time you give your investment to grow, the more likely you are to experience the full benefit of staying the course. It’s best to avoid the urge to act in response to recent market results.

It’s easier to remain committed if you invest in a multi-asset fund

Making consistently good investment decisions over time is not easy. It is a skill that requires considerable experience and discipline. It makes sense to rather leave it to the professionals who spend every day focused on identifying the best long-term opportunities available in global markets.

No-one knows the sequence of when there will be good or bad years

When investing in a multi-asset fund, you can benefit from positive returns across asset classes over time while spreading the risk of possible underperformance in any one asset class. While you may not capture all of the market upside in any given year, this approach makes it easier for you to stay the course over the long term.

Two decades of disciplined, multi-asset investing

Coronation offers three international multi-asset funds, established in South Africa, that have track records of between 10 and 20 years and are easy to use and access.

Coronation Optimum Growth can invest anywhere in the world and in any listed asset class. It is a sound solution for long-term investors looking for a larger exposure to offshore assets but still require their fund manager to decide on the allocation between domestic and foreign assets.

Since inception in March 1999, the fund has delivered a return of 14.4%* p.a., outperforming global equities with significantly less volatility.

Find out more by visiting Coronation Offshore.

The information contained in this article is not based on the individual financial needs of any specific investor. To find out more, speak to your financial adviser.

Coronation is an authorised financial services provider.

*Returns are quoted as at end-October 2019. For more detail about this fund, please download its comprehensive factsheet here.