CORONATION STRATEGIC INCOME FUND€¦ · Fund ClassFund Class A BenchmarkBenchmark 110% of STeFI...

CORONATION STRATEGIC INCOME FUND

Fund Information as at 31 October 2016

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Client Service: 0800 22 11 77 Email: [email protected] Website: www.coronation.com Minimum Disclosure Document

Strategic Income aims to achieve a higher return than a traditional money

market or pure income fund.

Strategic Income can invest in a wide variety of assets, such as cash,

government and corporate bonds, inflation-linked bonds and listed

property, both in South Africa and internationally.

As great care is taken to protect the fund against loss, Strategic Income does

not invest in ordinary shares and its combined exposure to listed property

(typically a maximum of 10%), preference shares (typically max. 10%),

international assets (typically max. 10%) and hybrid instruments (typically

max. 5%) would generally not exceed 25% of the fund.

The fund has a flexible mandate with no prescribed maturity or duration

limits for its investments. The fund is mandated to use derivative instruments

for efficient portfolio management purposes.

Strategic Income is tactically managed to secure an attractive return, while

protecting capital.

Its investments are carefully researched by a large and experienced

investment team and subjected to a strict risk management process. The

fund is actively positioned to balance long-term strategic positions with

shorter-term tactical opportunities to achieve the best possible income.

While the fund is managed in a conservative and defensive manner, there

are no guarantees it will always outperform cash over short periods of time.

Capital losses are possible, especially in the case of negative credit events

affecting underlying holdings.

The recommended investment term is twelve months and longer. The fund’s

exposure to growth assets like listed property and preference shares will

cause price fluctuations from day to day, making it unsuitable as an

alternative to a money market fund over very short investment horizons (12

months and shorter). Note that the fund is also less likely to outperform

money market funds in a rising interest rate environment.

Given its limited exposure to growth assets, the fund is not suited for

investment terms of longer than five years.

Investors who

are looking for an intelligent alternative to cash or bank deposits over periods from 12 to 36 months;

seek managed exposure to income generating investments;

are believers in the benefits of active management within the fixed interest universe.

An annual fee of 0.85% (excl. VAT) is payable.

Other costs that are incurred in the fund include trading, custody and audit

charges. All performance information is disclosed after deducting all fees

and other fund costs.

We do not charge fees to access or withdraw from the fund.

More detail is available on www.coronation.com.

Launch DateLaunch DateLaunch DateLaunch Date 2 July 2001

Fund ClassFund ClassFund ClassFund Class A

BenchmarkBenchmarkBenchmarkBenchmark 110% of STeFI 3-month index

Fund CategoryFund CategoryFund CategoryFund Category South African – Multi-asset – Income

Regulation 28Regulation 28Regulation 28Regulation 28 Complies

Income DistributionIncome DistributionIncome DistributionIncome Distribution Quarterly (March, June, September, December)

Investment minimumInvestment minimumInvestment minimumInvestment minimum R5 000 or R500/m debit order

Bloomberg CodeBloomberg CodeBloomberg CodeBloomberg Code CORSTIN

ISIN CodeISIN CodeISIN CodeISIN Code ZAE000031522

JSE CodeJSE CodeJSE CodeJSE Code CSIF

WHAT IS THE FUND’S OBJECTIVE?WHAT IS THE FUND’S OBJECTIVE?WHAT IS THE FUND’S OBJECTIVE?WHAT IS THE FUND’S OBJECTIVE?

WHAT WHAT WHAT WHAT DOES THE FUND DOES THE FUND DOES THE FUND DOES THE FUND INVEST IN?INVEST IN?INVEST IN?INVEST IN?

IMPORTANT PORTFOLIO CHARACTERISTICS AND RISKSIMPORTANT PORTFOLIO CHARACTERISTICS AND RISKSIMPORTANT PORTFOLIO CHARACTERISTICS AND RISKSIMPORTANT PORTFOLIO CHARACTERISTICS AND RISKS

HOW LONG SHOULD INVHOW LONG SHOULD INVHOW LONG SHOULD INVHOW LONG SHOULD INVESTORS REMAIN INVESTEDESTORS REMAIN INVESTEDESTORS REMAIN INVESTEDESTORS REMAIN INVESTED????

WHO WHO WHO WHO SHOULD CONSIDER INVESTING IN THE FUNDSHOULD CONSIDER INVESTING IN THE FUNDSHOULD CONSIDER INVESTING IN THE FUNDSHOULD CONSIDER INVESTING IN THE FUND????

WHAT WHAT WHAT WHAT COSTS COSTS COSTS COSTS CAN CAN CAN CAN I I I I EXPECT TO PAY?EXPECT TO PAY?EXPECT TO PAY?EXPECT TO PAY?

WHO WHO WHO WHO ARE THE FUND MANAGERSARE THE FUND MANAGERSARE THE FUND MANAGERSARE THE FUND MANAGERS????

GENERAL FUND INFORMATIONGENERAL FUND INFORMATIONGENERAL FUND INFORMATIONGENERAL FUND INFORMATION

MARK LE ROUX

BCom

NISHAN MAHARAJ

BSc (Hons)

ADRIAN VAN PALLANDER

BScEng, HTSdip, CFA, FRM

CORONATION STRATEGIC INCOME FUNDCLASS A as at 31 October 2016

Fund category South African - Multi Asset - Income

Launch date 02 July 2001

Benchmark 110% of the STeFI 3-month Index

Portfolio manager/s Mark le Roux, Nishan Maharaj and Adrian van

Pallander

R23.04 billionFund size

1531.86 centsNAV

1.00% Total Expense Ratio

Transaction Costs 0.01%

PORTFOLIO DETAIL

EFFECTIVE ASSET ALLOCATION EXPOSURE

PERFORMANCE AND RISK STATISTICS

GROWTH OF A R100,000 INVESTMENT

Sector 31 Oct 2016

92.0%Domestic Assets

Cash 31.0%

Bonds 52.0%

Listed Property 6.0%

Preference Shares 3.0%

8.0%International Assets

Cash 1.3%

Bonds 5.3%

Property 1.4%

PORTFOLIO COMPOSITIONPERFORMANCE AND MODIFIED DURATION

20.1%

Corporate Bonds

(fixed)

21.8%

Money Market NCDs

(floating)

30.0%

Corporate Bonds

(floating)

3.0%

Preference Shares

3.6%

Other

4.0%

Inflation Linked Bonds

4.7%

Money Market NCDs

(fixed)

5.6%

Cash

7.2%

Property

As at 31 Oct 2016Fund Benchmark Active Return

258.3% 109.9% 368.2%Since Launch (unannualised)

8.7% 1.9% 10.6%Since Launch (annualised)

8.6% 1.5% 10.1%Latest 15 years (annualised)




7.6% 1.0% 8.6%Latest 1 year

6.4% 1.7% 8.1%Year to date

Fund

1.2 Modified Duration

1.0 Modified Duration (ex Inflation Linkers)

9.2%Yield

INCOME DISTRIBUTIONSRISK STATISTICS SINCE LAUNCH

Declaration Payment Amount InterestDividend

30 Sep 2016 03 Oct 2016 28.41 26.96 1.45

30 Jun 2016 01 Jul 2016 27.29 25.66 1.63

31 Mar 2016 01 Apr 2016 24.88 23.42 1.46

31 Dec 2015 04 Jan 2016 24.93 23.54 1.39

BenchmarkFund

2.7%Annualised Deviation 0.7%

0.87 Sharpe Ratio N/A

60.5%Maximum Gain N/A

(1.3)%Maximum Drawdown N/A

91.8%Positive Months N/A

Fund Date Range

Highest annual return Nov 2002 - Oct 2003 18.7%

Lowest annual return Jun 2007 - May 2008 2.6%

MONTHLY PERFORMANCE RETURNS

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

0.7% 0.3% 1.5% 1.0% 0.9% 0.6% 0.9% 1.0% 0.5% 0.3%Fund 2016 8.1%

1.6% (0.1)% 0.5% 0.7% 0.1% 0.4% 1.0% 0.4% 0.5% 1.0% 0.3% 0.1%Fund 2015 6.7%

(0.6)% 0.8% 1.1% 1.0% 0.8% 0.8% 0.7% 0.6% 0.4% 0.9% 0.7% 0.3%Fund 2014 7.6%

0.8% 0.4% 0.9% 1.3% 0.0% (0.4)% 0.5% 0.1% 1.2% 0.8% 0.3% 1.0%Fund 2013 7.2%

0.8% 0.2% 1.0% 1.1% 0.9% 1.0% 1.8% 1.0% 0.6% 1.0% 1.0% 0.7%Fund 2012 11.9%

0.5% 0.6% 0.4% 1.0% 1.1% 0.7% 0.7% 1.8% 0.7% 1.2% 0.7% 0.7%Fund 2011 10.5%

1.1% 1.1% 1.3% 0.8% 0.2% 0.9% 1.5% 1.4% 0.9% 0.8% 0.4% 0.2%Fund 2010 11.2%

Client Service: 0800 22 11 77 Email: [email protected] Website: www.coronation.com Minimum Disclosure Document /4

Please refer to page 4 of the Comprehensive Fact Sheet for important additional infomation, including change in cost disclosures.Issue date: 2016/11/08

CORONATION STRATEGIC INCOME FUND Quarterly Portfolio Manager Commentary

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Please note that the commentary is for the retail class of the fund. The fund returned 0.32% in October, bringing its total return for the 12-month period from 1 November 2015 to 31 October 2016 to 8.63%. This is well ahead of the returns delivered by both cash (6.88%) and its benchmark (7.59%) over the same period. The domestic bond market generated decent returns for the month of October, following sharp gains in September. The All Bond Index (ALBI) returned 0.64%, after rising 2.98% in September, with longer-dated maturities being the best performers. Bonds with a maturity of 12 years or longer gained 0.73%, compared to those with maturities of one to three years rising 0.50%. Inflation-linked bonds were up 0.67% (0.49% in September), while the cash return was almost unchanged compared to the prior month at 0.60%. Politics dominated market news in October, with the US election looming and the UK’s Prime Minister, Theresa May, announcing a harder line on Brexit negotiations and timing than what was anticipated. The pound weakened sharply, and data started to show some increases in headline inflation across developed economies. In the US, the presidential debates got underway at the end of September and continued throughout October. Democratic candidate Hilary Clinton was deemed a marginal favourite at the end of the process, while Republican candidate Donald Trump’s campaign seemed to be losing steam. However, this was only until the end of October, when the FBI issued a warrant to investigate emails sent from Mrs Clinton’s personal server. At the time of writing, she had been cleared but it was still too early to tell if there had been a material shift in support, with polling data – flawed as it may be – still showing Clinton most likely to win on 8 November. Economic data were somewhat better with third-quarter GDP expected to accelerate above 3% year-on-year (y/y), boosted by stronger trade data and rising inventories. The Federal Open Market Committee minutes showed a more divided US Federal Reserve at the September meeting than has been the case for some time. Three members voted in favour of a rate hike, while the dispersion of rate expectations in the forward-looking ‘dot plot’ was wider than in June. Towards the end of October, shorter-dated negotiable certificates of deposit (NCD) traded at 8.735% (three year) and 9.255% (five year) respectively. Current market pricing suggests that the repo rate will remain flat over the next two years, in line with our expectations. Given our outlook for interest rates, NCDs therefore continue to hold appeal due to the inherent protection offered by NCD yields. Bank credit spreads remain elevated due to a combination of new regulatory requirements (Basel III) and SA’s poor macroeconomic backdrop. Spreads in the five-year region have tightened marginally to approximately 140 bps (from 150 bps). The fund continues to hold decent exposure to these instruments (both floating and fixed) but remains cautious given the current phase of the credit and business cycle. We will therefore be more selective when increasing exposure. NCDs have the added benefit of being very liquid, thus aligning the liquidity of the fund with the needs of its investors. At the UK Conservative Party’s conference in early October, prime minister May announced her plans to trigger Article 50 and start the two-year process of exit negotiations by the end of March 2017. (Britain’s High Court has subsequently ruled that the British government cannot initiate this process without getting authorisation from Parliament – a ruling government intends to appeal.) May’s speech, in tone, indicated a tough stance on immigration and other issues of sovereignty, including law-making and the independence of UK courts from the European system. Press reports, scholarly articles and commentary have generally branded her speech as signalling a lower tolerance for compromise as the UK’s starting position for negotiating its EU exit. With potentially nastier politics playing out in the background, speculation around Bank of England (BoE) Governor Mark Carney leaving the bank before the end of his current term in 2021 was laid to rest with a compromised commitment to remain in office until after the conclusion of Brexit negotiations in 2019. Activity data in the UK were a little weaker than those published immediately after the referendum, and third-quarter GDP growth slowed to 0.5% from 0.7% quarter-on-quarter (q/q) in the second quarter of the year. Inflation accelerated in September, rising to 1.0% y/y for headline inflation and 1.5% y/y for core. Resilient growth and a weaker currency, coupled with unfavourable base effects, raise the risk for further gains in inflation in coming months. Taken together, this makes it a very close call as to whether the BoE will cut rates at the Monetary Policy Committee (MPC) meeting on 3 November. The euro area’s flash estimate for GDP showed steady growth of 0.3% q/q, in line with both expectations and growth in the second quarter of the year. The available data provide little detail, but domestic demand seems resilient against modestly weaker trade performance during the quarter. On the positive side, confidence data published for the fourth quarter of 2016 showed a rebound on third-quarter weakness, boding well for growth into the year end. Inflation accelerated in September to 0.4% y/y from 0.2% at a headline level, and remained unchanged at 0.8% for core. Early flash estimates for October show another very modest headline uptick to 0.5%, and again unchanged for core inflation. The European Central Bank did not make any changes to its monetary policy stance, and delayed guidance on tapering. The rand gained just over 2% during October (ending at 13.47/$), making it one of the top performers among emerging market currencies. This puts its year-to-date performance well above the average of its peer group, suggesting that investor concerns around the SA political landscape are starting to wane in favour of valuation. Foreign flows retreated in October, as there were net outflows of R12 billion. However, year-to-date inflows remain quite strong at R50.42 billion. The fund maintains its maximum exposure to offshore assets, but has hedged a portion of its exposure back to rand by selling JSE-traded currency futures (both in US dollar and pound). These instruments are

used to adjust the fund’s exposure synthetically, allowing the fund to maintain its core holdings in offshore assets. (It also has the added effect of enhancing the fund’s yield.) In South Africa, politics again dominated news flow in October with the National Prosecuting Authority filing charges of fraud against Finance Minister Gordhan and two former SARS colleagues on 11 October. The charges were deemed implausible from the start, and were withdrawn on 31 October, just two days before Minister Gordhan was to appear in court. Minister Gordhan delivered the medium-term budget policy statement on 26 October, tabling an update which sees a deterioration in both economic and fiscal metrics over the next three years relative to expectations in February. Disappointing growth and weaker tax revenue collection are the biggest culprits. Nonetheless, the National Treasury reiterated its strong commitment to expenditure constraints and maintained the current path of planned fiscal consolidation. This should see the February Budget’s primary balance in surplus next year, and gross debt peak at 53.0% the year after. Activity data released in October on balance disappointed: Retail sales weakened to 0.2% y/y in August, extending the slowdown in retail activity; manufacturing production was a little stronger with output up 2.2% y/y; and mining output improved on July’s -5.4% y/y collapse, but remained weak at -0.2% y/y in August. The Purchasing Managers’ Index print bounced a little in September but was weak again in October, pointing to a subdued start to the final quarter of the year. Inflation was softer than expected in September at 6.0% y/y from 5.9% y/y in August, and core inflation moderated slightly to 5.6% y/y from 5.7% y/y in August. The main contributor to the moderation was a cut in retail fuel prices, coupled with slower than expected rental inflation, which is measured on the month. In addition, there was a smaller than anticipated increase in food inflation. In annual terms, however, food inflation remains elevated and may still accelerate in monthly terms as we head into the festive season. Fuel prices rose in October and again in November, which will add price momentum in both months. We expect food inflation in annual terms to remain elevated at about 11.5% to 12.0% y/y, which should see CPI rise to about 6.4% by November before moderating meaningfully in 2017. The currency remains a risk, especially in the event of a further deterioration in domestic politics, and there are other measurement challenges related to rebasing and reweighting (e.g. potential increases in administered prices notably medical aid, and gambling inflation). There was no MPC meeting in October. The MPC left the repo rate unchanged in September, as was widely expected. There was a modest improvement in the South African Reserve Bank’s (SARB) inflation forecast for the peak and average for 2016, and the forecast now anticipates inflation moderating to an average of 5.8% in 2017 (from 6.0% previously). This forward-expectation is important because the post-meeting statement said that if the data play out in line with the current forecast, the current cycle is most likely to be complete. We don’t think the SARB will hike rates again in this cycle, and if inflation surprises to the downside as we expect, there may be room to ease late next year. Global bond yields are at all-time lows (and negative in most of Europe), as global monetary policy settings remain very accommodative in response to persistently low inflation rates and, in some countries, continuing low rates of growth. This supportive environment for emerging market bond yields is reinforced locally by expectations of lower inflation, low growth, unchanged monetary policy and a narrower current account deficit. Political uncertainty has forced a more cautious approach in the near term. However, as time elapses, the valuation appeal of local bonds relative to fundamentals may outweigh these political risks. We remain neutral on SA long bonds over the near term, but are more positive on medium to longer-term outcomes. The local 10-year bond yield ended the month at 8.70%, in the middle of its recent 8.5% to 9% trading range. The fund will continue to increase duration into higher yields and look for opportunities on the yield curve that will provide attractive investments to enhance both its yield and risk/reward profile. The SA listed property market was up marginally in October (up 0.5%), but remains up both year-to-date and over 12 months (9.37% and 2.16% respectively). More recently there has been evidence that poor economic conditions have started to affect the local property market. Still, we remain confident that the market offers selective value. The yield gap between the property index and the current 10-year government bond remains quite stretched. If one excludes low-yielding, high-cap stocks from the index, the property sector’s yield rises to approximately 8.2%. The fund maintains holdings in counters that offer strong distribution and income growth, with upside to their net asset value valuations. In the event of a moderation in listed property valuations, which may be triggered by further risk asset or bond market weakness, we will look to increase the fund’s exposure to this sector at more attractive levels. The preference share index was up 1.63% in October, continuing to be the best performer within the fixed income asset class so far this year (18.41%) and also over the last twelve months (16.97%). We continue to favour preference shares given the steady dividend yields on offer, and maintain the current level of holdings in the fund. Preference shares are linked to the prime rate and, depending on the risk profile of the issuer, currently yield between 8.5% and 11% (subject to a 15% dividend tax, depending on the investor entity). The change in capital structure requirements as mandated by Basel III will discourage banks from issuing preference shares. This will limit availability (and boost possible buybacks). In addition, most of the bank-related preference shares trade at a discount, which enhances their attractiveness for holders from a total return perspective and increases the likelihood of bank buybacks. We remain vigilant of risks emanating from the dislocations between stretched valuations and the underlying fundamentals of the SA economy. However, we believe that the fund’s current positioning correctly reflects appropriate levels of caution. The fund’s yield of 9.20% continues to be attractive relative to its duration risk. We continue to believe that this yield is an adequate proxy for expected fund performance over the next 12 months. As short-term rates move higher, the benefit from the longer-term rise in fund yield (due to our increased floating-rate exposure), should moderate any potential shorter-term capital loss. As is evident, we remain cautious in our management of the fund. We continue to invest only in assets and instruments that we believe have the correct risk and term premium, to limit investor downside and enhance yield. Portfolio managers Mark le Roux, Nishan Maharaj and Adrian van Pallander as at 31 October 2016

CORONATION STRATEGIC INCOME FUND

Important Information

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Unit trusts should be considered medium- to long-term investments. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is not

necessarily an indication of future performance. The fund is mandated to invest up to 10% of its portfolio into foreign securities and may as a result be exposed to macroeconomic,

settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in exchange rates

may cause the value of underlying investments to go up or down. Asset allocation is reflected on a look-through basis. The fund is managed in line with Regulation 28 limits,

although it is not required as per the fund’s supplemental deed. The yield shown is an estimate (gross of fees) in part based on market assumptions and forecasts. The yield is

calculated by taking the interest and income receivable of all the instruments in the fund divided by the net asset value, expressed as a nominal annual rate. It is provided to give

an approximate indication of the achievable yield for an investment made at the reporting date. Actual experience may differ, based on changes in market values, interest rates and

changes in costs actually experienced during the investment period.

Coronation Management Company (RF) (Pty) Ltd is a Collective Investment Schemes Manager approved by the Financial Services Board in terms of the Collective Investment

Schemes Control Act. The Management Company reserves the right to close the fund to new investors if we deem it necessary to limit further inflows in order for it to be managed

in accordance with its mandate. Unit trusts are allowed to engage in scrip lending and borrowing. Standard Chartered has been appointed as trustees for the fund (www.sc.com/za;

011-2176600). Coronation is a full member of the Association for Savings & Investment SA (ASISA).

Unit trusts are traded at ruling prices set on every trading day. Fund valuations take place at approximately 15h00 each business day, except at month end when the valuation is

performed at approximately 17h00 (JSE market close) and forward pricing is used. Instructions must reach the Management Company before 14h00 (12h00 for the Money Market

Fund) to ensure same day value. The payment of withdrawals may be delayed in extraordinary circumstances, when the manager with the consent of the fund trustees deem this to

be in the interest of all fund investors. These circumstances may include periods when significant underlying markets suspend trading which will prevent accurate valuation of the

instruments held in the fund. When the suspension of trading relates to only certain assets held by the fund, these assets may be side-pocketed. This process allows normal liquidity

on the assets that can be valued, but will delay liquidity on the affected portion of the fund. If the fund is faced with excessive withdrawals, the affected withdrawals may be ring-

fenced, which is the separation and delayed sale of the assets reflecting the interest of the liquidity seeking investors. It ensures that the sale of a large number of units will not force

Coronation to sell the underlying investments in a manner that may have a negative impact on remaining investors of the fund.

Performance is calculated by Coronation as at the last day of the month for a lump sum investment using Class A NAV prices with income distributions reinvested. All underlying

price and distribution data is sourced from Morningstar. Performance figures are quoted after the deduction of all costs (including manager fees and trading costs) incurred within

the fund. Note that individual investor performance may differ as a result of the actual investment date, the date of reinvestment of distributions and dividend withholding tax,

where applicable. Annualised performance figures represent the geometric average return earned by the fund over the given time period. Unannualised performance represents

the total return earned by the fund over the given time period, expressed as a percentage.

TER is calculated as a percentage of the average net asset value of the portfolio incurred as charges, levies and fees in the management of the portfolio for a rolling 36-month

period to the last quarter end (December, March, June and September) The TER charged by any underlying fund held as part of a fund’s portfolio is included in the TER figure, but

trading and implementation costs incurred in managing the fund are excluded. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The

current TER may not necessarily be an accurate indication of future TER's.

Transaction costs are a necessary cost in managing a fund and impacts the fund’s return. They should not be considered in isolation as returns may be impacted by many other

factors over time including market returns, the type of fund, the investment decisions of the investment manager and the TER.

Coronation does not provide financial advice. If you appoint an advisor, advice fees are contracted directly between you and the advisor. We will facilitate the collection of advice

fees only upon receiving your instruction, up to a maximum of an initial fee of 3.00% and an ongoing fee of 1.00% per annum (where an initial advice fee of more than 1.50% is

selected, the maximum annual advice fee that we will collect is 0.50%). Advice fees are usually collected through the redemption of units. You may cancel the instruction to facilitate

the payment of advice fees at any time. Advisors will only share in Coronation fees subject to prior approval by and/or disclosure to the investor. A portion of Coronation’s annual

management fee may be paid to administration platforms such as Linked Investment Service Providers (LISPs) as a payment for administration and distribution services.

Additional information such as fund prices, brochures, application forms and a schedule of fund fees and charges is available on our website, www.coronation.com

This document is for information purposes only and does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe for or purchase any

particular investment. Opinions expressed in this document may be changed without notice at any time after publication. We therefore disclaim any liability for any loss, liability,

damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result of or which may be attributable, directly or indirectly, to the use

of or reliance upon the information.

IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION STRATEGIC INCOME FUND

HOW ARE UNITS PRICED AND AT WHICH PRICE WILL MY TRANSACTION BE EXECUTED?

HOW WAS THE PERFORMANCE INFORMATION INCLUDED IN THIS FACT SHEET CALCULATED?

WHAT IS THE TOTAL EXPENSE RATIO (TER) AND TRANSACTION COSTS (TC)?

ADVICE AND PLATFORM COSTS

WHERE CAN I FIND ADDITIONAL INFORMATION?

IMPORTANT INFORMATION REGARDING TERMS OF USE

CORONATION BALANCED DEFENSIVE FUND


Page 1/4


Balanced Defensive is in the first instance managed to protect capital over

any twelve-month period. In addition, we aim to achieve reasonable

investment growth over the long run.

It is specifically managed to suit very cautious investors who want to draw an

income over an extended period of time.

Balanced Defensive can invest in a wide range of assets, such as shares,

bonds, listed property and cash, both in South Africa and internationally.

The fund will typically hold a maximum of 40% of its investments in growth

assets (shares and property). Shares usually offer the best growth, but this

comes with the greatest risk of short-term losses. The fund’s exposure to

shares is therefore carefully balanced with more stable investments like

bonds.

Exposure to foreign assets (excluding Africa) is limited to 25%. The fund is

mandated to use derivative instruments for efficient portfolio management

purposes.

The fund is tactically managed to protect and grow capital, as well as secure

an attractive income.

A large and experienced investment team actively seeks out the best

potential opportunities for income and growth, while taking great care to

consider the different risks within the fund.

Balanced Defensive is specifically managed to not lose money over any 12-

month period, although it cannot guarantee protection against losses.

Our intent is that the fund should produce a return of at least cash plus 3%

over the medium term.

The fund is diversified across a range of assets reflecting its cautious risk

budget. This includes a selection of shares that we believe are attractively

valued, as well as quality income assets.

The recommended investment term is three years and longer.

The fund’s exposure to shares may result in short-term price fluctuations that

make it unsuitable for investors who can only invest for short periods

Pensioners and other investors requiring an income, especially those in the second half of retirement.

Living annuity investors seeking a fund that aims to achieve both income and capital growth.

Cautious pre-retirement investors seeking a low-risk fund for their retirement annuity, provident fund, preservation fund or pension fund.

Trusts, endowments, foundations and charities who require long-term funding of a moderate spending rule.

The fund is not appropriate for investors who want to build wealth over

more than five years.

An annual fee of 1.4% is payable.

If the fund declines in value over any 12-month period, the fee is reduced to

0.75%. All fees exclude VAT. Other costs incurred in the fund include fees

payable to unconnected international fund managers on a portion of assets

situated offshore as well as trading, custody and audit charges. All

performance information is disclosed after deducting all fees and other fund

costs.


More detail is available on www.coronation.com

Launch DateLaunch DateLaunch DateLaunch Date 1 February 2007


BenchmarkBenchmarkBenchmarkBenchmark Alexander Forbes 3-month (STeFI) Index + 3%

Fund CategoryFund CategoryFund CategoryFund Category South African – Multi Asset – Low Equity


Income DistributionIncome DistributionIncome DistributionIncome Distribution Quarterly (March, June, September, December)


Bloomberg CodeBloomberg CodeBloomberg CodeBloomberg Code CBALDFA

ISIN ISIN ISIN ISIN CodeCodeCodeCode ZAE000090627

JSE CodeJSE CodeJSE CodeJSE Code COBA




HOW LONG SHOULD INVESTORS REMAIN HOW LONG SHOULD INVESTORS REMAIN HOW LONG SHOULD INVESTORS REMAIN HOW LONG SHOULD INVESTORS REMAIN INVESTEDINVESTEDINVESTEDINVESTED????

WHO WHO WHO WHO SHOULD CONSIDER INVESTING SHOULD CONSIDER INVESTING SHOULD CONSIDER INVESTING SHOULD CONSIDER INVESTING IN THE FUNDIN THE FUNDIN THE FUNDIN THE FUND????




CHARLES DE KOCK

BCom (Hons), MCom

(Economics)

DUANE CABLE

BCom (Hons), CA

(SA), CFA

CORONATION BALANCED DEFENSIVE FUNDCLASS A as at 31 October 2016


176.62 centsNAV



Fund category South African - Multi Asset - Low Equity

Launch date 01 February 2007

Benchmark Alexander Forbes 3-month (SteFI) Index + 3% p.a.

Portfolio manager/s Charles de Kock and Duane Cable

PORTFOLIO DETAIL




31 Oct 2016SectorDomestic Assets 76.0%

16.0%Equities

Basic Materials 2.4%

Industrials 0.6%

Consumer Goods 3.0%

Health Care 0.4%

Consumer Services 3.7%

Telecommunications 0.5%

Financials 3.9%

Derivatives 1.5%

2.0%Preference Shares & Other Securities

5.7%Real Estate

40.7%Bonds

1.3%Commodities

10.4%Cash

International Assets 24.0%

14.3%Equities

1.0%Real Estate

4.1%Bonds

0.4%Commodities

4.3%Cash

TOP 10 HOLDINGSPERFORMANCE FOR VARIOUS PERIODS

Fund Benchmark Active Return




9.1% (1.8)% 7.4%Latest 3 years (annualised)

9.9% (6.2)% 3.6%Latest 1 year

8.3% (5.4)% 2.9%Year to date

As at 30 Sep 2016 % of Fund

10.3%Coronation Global Capital Plus Fund

9.9%Coronation Global Opportunities Equity Fund

2.2%Coronation Global Emerging Markets Fund

1.5%Naspers Ltd

0.9%Old Mutual Life Assurance Company of South Africa

0.8%Anheuser-Busch Inbev SA/NV

0.8%Growthpoint Properties Ltd

0.8%INTU Properties

0.7%Mondi Limited

0.6%British American Tobacco Plc



30 Sep 2016 03 Oct 2016 1.80 1.57 0.23

30 Jun 2016 01 Jul 2016 1.60 1.41 0.19

31 Mar 2016 01 Apr 2016 1.55 1.33 0.22

31 Dec 2015 04 Jan 2016 1.37 1.24 0.13

BenchmarkFund






Fund Date Range

Highest annual return Jun 2012 - May 2013 21.2%

Lowest annual return Mar 2008 - Feb 2009 2.0%



(1.2)% 0.3% 2.3% 0.5% 2.8% (1.9)% 0.8% 1.9% (1.2)% (1.3)%Fund 2016 2.9%

1.6% 1.3% 0.1% 1.7% (0.6)% (0.3)% 0.9% (0.4)% (0.1)% 3.0% (0.1)% 0.8%Fund 2015 8.1%

(0.8)% 1.4% 0.9% 0.8% 1.6% 1.1% 0.7% 0.6% (0.1)% 0.7% 1.1% 0.4%Fund 2014 8.8%

2.9% 0.3% 1.7% 0.8% 3.5% (2.6)% 1.8% 0.1% 2.7% 1.3% 0.4% 1.9%Fund 2013 15.7%

1.7% 0.5% 1.6% 1.4% (0.1)% 0.7% 2.4% 1.8% 0.9% 2.2% 1.5% 0.7%Fund 2012 16.4%

0.8% 0.5% 0.4% 1.4% 1.1% (0.3)% 0.1% 1.1% 0.8% 3.5% (0.2)% 0.6%Fund 2011 10.3%

0.5% 1.1% 1.5% 0.9% (0.8)% 0.1% 2.8% 0.8% 2.6% 1.0% 0.4% 0.8%Fund 2010 12.2%

0.6% (2.3)% 2.3% 0.7% 2.5% 0.6% 3.2% 2.0% 0.2% 2.4% (0.6)% 1.2%Fund 2009 13.5%

Client Service: 0800 22 11 77 Email: [email protected] Website: www.coronation.com Minimum Disclosure Document Page 2/4



Quarterly Portfolio Manager Commentary

Page 3/4


Please note that the commentary is for the retail class of the fund.

The world post the global financial crisis remains one characterised by slow growth and very low inflation and interest rates. The past quarter was just another paragraph in this very long chapter, with no major changes in the general trend. If anything, the shock of the Brexit vote contributed to even greater uncertainty: global bond yields moved even lower — and in many developed nations, into unprecedented negative territory. In contrast to the exceptionally low global bond yields, some emerging market bonds still show reasonable yields and have attracted the attention of foreign investors. South Africa is one of the countries that has attracted global money in the search for yield, to the benefit of the local currency and bonds. During the quarter, the rand (although quite volatile) appreciated by 7.3% against the US dollar and by 10.1% against the weak British pound. Bond yields, in tandem with the currency, also closed the quarter stronger than at its start. We have used the volatility in the rand and the local bond market to good effect, reducing global exposure through currency futures when the rand was weaker and reversing those positions when it recovered. We were also very active in bonds, buying when the SA 10-year bond was in the 9% yield region and selling some 50 bps or more lower. The fund's effective offshore exposure increased from 21.5% to 24.5% as a result of these currency trades, while the domestic bond exposure increased from 37.0% to 38.8% of the total portfolio. Within the bond component, only 2% comprises longer-dated fixed government bonds. Floating-rate stocks and corporate bonds remain the major constituents of our total bond exposure, by a significant margin.

When considering domestic equities, we were small net buyers over the quarter. New holdings included Curro Holdings and Hammerson, which the fund invested in for the first time. In the case of Hammerson, this involved a partial switch with our holding in Intu. It is worth noting that the strengthening rand acts as a brake on the fund’s performance. This is due to its high exposure to rand hedge shares as well as the fact that it holds almost its full quota of foreign assets. Over the past quarter the strong rand therefore limited the fund’s return to 1.5%. Its return over the past year was 8.2%. Over longer and more meaningful periods of three and five years, the fund returned 8.3% per annum and 11.4% per annum respectively. Looking forward we remain of the view that South Africa faces a tough global environment. Protecting capital remains a key part of managing this low-risk portfolio in these volatile and uncertain times. Portfolio managers Charles de Kock and Duane Cable as at 30 September 2016



Page 4/4


The Balanced Defensive Fund should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past

performance is not necessarily an indication of future performance. The fund is mandated to invest up to 30% (including a maximum exposure of 5% to Africa, excluding South

Africa) of its portfolio into foreign securities and may as a result be exposed to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to

similar investments in the South African markets. Fluctuations or movements in exchange rates may cause the value of underlying investments to go up or down. Asset allocation

is reflected on a look-through basis. Any African exposure (ex SA) is reflected under international assets. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment

Schemes Manager approved by the Financial Services Board in terms of the Collective Investment Schemes Control Act. The Management Company reserves the right to close the

fund to new investors if we deem it necessary to limit further inflows in order for it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending

and borrowing. Standard Chartered has been appointed as trustees for the fund (www.sc.com/za; 011-2176600). Coronation is a full member of the Association for Savings &

Investment SA (ASISA).




















The base fee of the fund has been reduced by 0.10%. Our expectation is therefore that the TER will decrease in future.











IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION BALANCED DEFENSIVE FUND




FEE CHANGE




CORONATION CAPITAL PLUS FUND


Page 1/4


Capital Plus is in the first instance managed to achieve reasonable

investment growth over the medium to long term. Our intent is that the fund

should produce an annualised return of at least inflation plus 4% over time.

In addition, we aim to preserve capital over any twelve-month period. It is

specifically managed to suit investors who want to draw an income over an

extended period of time.

Capital Plus can invest in a wide range of assets, such as shares, bonds, listed

property and cash, both in South Africa and internationally. As the fund

actively seeks to curb risk and volatility, only a maximum of 60% of its

investments may be held in growth assets like shares and listed property.

Shares usually offer the best growth, but this comes with the greatest risk of

short-term losses. The fund’s exposure to shares is therefore carefully

balanced with more stable investments like bonds. Maximum exposure to

foreign assets is 25% (excluding Africa). The fund is mandated to use

derivative instruments for efficient portfolio management purposes.

The fund is tactically managed to protect and grow capital, as well as secure

an attractive income. A large and experienced investment team actively

seeks out the best potential opportunities for income and growth, while

carefully considering the different risks within the fund.

Capital Plus is specifically managed to reduce the probability of losing

money over any 12-month period, although it cannot guarantee protection

against losses.

The fund is diversified across a range of assets reflecting its dual objectives

of reasonable growth and capital stability. This includes a selection of shares

we believe are attractively valued and may offer strong long-term returns, as

well as strategic positions in quality income assets.

The recommended investment term is three years and longer. The fund’s

exposure to shares may result in short-term price fluctuations, making it

unsuitable to investors who can only invest for short periods.

Pensioners and other investors requiring an income, especially those in the first half of retirement.

Living annuity investors seeking a fund that aims to achieve both income and capital growth.

Investors requiring a low-risk fund, which offers a reasonable rate of return, for their retirement annuity, provident fund, preservation fund or pension fund.

Conservative investors who want to protect their savings.

Trusts, endowments, foundations and charities who require long-term funding of a moderate spending rule.


If the fund does not produce a positive return over any 24-month period, the

annual fee is reduced to 0.75%. All fees exclude VAT. Other costs incurred

in the fund include fees payable to unconnected international fund

managers on a portion of assets situated offshore as well as trading, custody

and audit charges. All performance information is disclosed after deducting

all fees and other fund costs.



Launch DateLaunch DateLaunch DateLaunch Date 2 July 2001


BenchmarkBenchmarkBenchmarkBenchmark CPI + 4%

Fund CategoryFund CategoryFund CategoryFund Category South African – Multi-asset – Medium Equity


Income DistributionIncome DistributionIncome DistributionIncome Distribution Quarterly (March, June, Sep, Dec)


Bloomberg CodeBloomberg CodeBloomberg CodeBloomberg Code CORCAPP


JSE CodeJSE CodeJSE CodeJSE Code CCPF




HOW LONG SHOULD INVESTORS HOW LONG SHOULD INVESTORS HOW LONG SHOULD INVESTORS HOW LONG SHOULD INVESTORS REMAIN INVESTEDREMAIN INVESTEDREMAIN INVESTEDREMAIN INVESTED????

WHO WHO WHO WHO SHOULD CONSIDER SHOULD CONSIDER SHOULD CONSIDER SHOULD CONSIDER INVESTING IN THE FUNDINVESTING IN THE FUNDINVESTING IN THE FUNDINVESTING IN THE FUND????




CHARLES DE KOCK

BCom (Hons), MCom

(Economics)

DUANE CABLE

BCom (Hons), CA

(SA), CFA

CORONATION CAPITAL PLUS FUNDCLASS A as at 31 October 2016


3973.96 centsNAV

1.82% (including a performance fee of 0.27%)Total Expense Ratio


Fund category South African - Multi Asset - Medium Equity


Benchmark CPI + 4% p.a.

Portfolio manager/s Charles de Kock and Duane Cable

PORTFOLIO DETAIL





26.0%Equities


Industrials 2.4%

Consumer Goods 5.8%

Health Care 0.7%



Financials 8.4%

Derivatives (4.9)%


10.1%Real Estate

28.3%Bonds

1.6%Commodities

5.2%Cash


15.4%Equities

1.0%Real Estate

3.7%Bonds

0.4%Commodities

4.3%Cash









10.2% (7.9)% 2.3%Latest 1 year

9.2% (6.2)% 3.0%Year to date


11.7%Coronation Global Capital Plus Fund


2.9%Naspers Ltd


1.6%Standard Bank Group Ltd


1.4%Anheuser-Busch Inbev SA/NV

1.4%INTU Properties

1.3%Mondi Limited




30 Sep 2016 03 Oct 2016 35.54 24.48 11.06

30 Jun 2016 01 Jul 2016 29.39 20.05 9.34

31 Mar 2016 01 Apr 2016 29.42 20.97 8.45

31 Dec 2015 04 Jan 2016 21.62 17.13 4.49

BenchmarkFund


3.7%Downside Deviation N/A

0.68 Sharpe Ratio 1.14

29.5%Maximum Gain 26.9%

(8.3)%Maximum Drawdown (0.9)%

69.6%Positive Months 91.8%

Fund Date Range

Highest annual return Aug 2004 - Jul 2005 33.8%

Lowest annual return Nov 2007 - Oct 2008(6.2%)



(1.7)% 0.5% 3.0% 0.9% 3.0% (2.4)% 0.9% 1.9% (1.3)% (1.7)%Fund 2016 3.0%

1.5% 1.9% (0.5)% 2.3% (0.9)% (1.0)% 0.6% (1.1)% (1.1)% 3.6% (1.6)% 0.9%Fund 2015 4.6%

(0.3)% 0.8% 1.0% 1.3% 1.8% 1.2% 1.0% 0.4% (0.7)% 0.0% 1.1% 0.4%Fund 2014 8.1%

3.5% (0.4)% 1.7% (1.0)% 5.5% (3.5)% 2.2% 1.1% 3.2% 1.9% (0.5)% 2.1%Fund 2013 16.8%

2.5% 0.7% 1.3% 1.5% (0.7)% 0.2% 1.5% 1.7% 1.5% 2.5% 0.9% 1.7%Fund 2012 16.4%

0.6% 0.5% (0.1)% 1.2% 1.0% (0.6)% (0.6)% 0.4% 0.9% 3.7% 0.4% 0.0%Fund 2011 7.5%

0.3% 1.0% 2.2% 0.8% (1.3)% (0.9)% 3.4% 0.3% 3.7% 1.4% 0.1% 1.5%Fund 2010 12.9%

0.1% (4.3)% 2.7% 0.2% 3.6% (0.1)% 5.9% 2.7% 0.4% 2.8% (0.7)% 1.6%Fund 2009 15.5%

(4.0)% 3.8% (1.4)% (0.2)% 0.3% (4.1)% 1.0% 3.7% (1.4)% (0.8)% 1.9% 2.3%Fund 2008 0.7%





Page 3/4



The world post the global financial crisis remains one characterised by slow growth and very low inflation and interest rates. The past quarter was just another paragraph in this very long chapter, with no major changes in the general trend. If anything, the shock of the Brexit vote contributed to even greater uncertainty: global bond yields moved even lower — and in many developed nations into unprecedented negative territory. In contrast to the exceptionally low global bond yields, some emerging market bonds still show reasonable yields and have attracted the attention of foreign investors. South Africa is one of the countries that has attracted global money in the search for yield, to the benefit of the local currency and bonds. During the quarter, the rand (although quite volatile) appreciated by 7.3% against the US dollar and by 10.1% against the weak British pound. Bond yields, in tandem with the currency, also closed the quarter stronger than at its start. We have used the volatility in the rand and the local bond market to good effect, reducing global exposure through currency futures when the rand was weaker and reversing those positions when it recovered. We were also very active in bonds, buying when the SA 10-year bond was in the 9% yield region and selling some 50 bps or more lower. The fund's effective offshore exposure increased from 24.5% to 24.9% as a result of these currency trades, while the domestic bond exposure decreased from 28.3% to 26.1% of the total portfolio. Within the bond component only, 1.9% comprises longer-dated fixed government bonds. Floating-rate stocks and corporate bonds remain the major constituents of our total bond exposure, by a significant margin.

When considering domestic equities, we were small net buyers over the quarter. New holdings included Curro Holdings and Hammerson, which the fund invested in for the first time. In the case of Hammerson, this involved a partial switch with our holding in Intu. It is worth noting that the strengthening rand acts as a brake on the fund’s performance. This is due to its high exposure to rand hedge shares, as well as the fact that it holds its full quota of foreign assets. Over the past quarter, the strong rand therefore limited the fund’s return to 1.5%. Its return over the past year was 7.8%. Over longer and more meaningful periods of three and five years, the fund has returned 7.1 % per annum and 10.9% per annum respectively. The fund aims to deliver a return of inflation plus 4%, while also attempting never to reflect a negative return over any rolling 12-month period. The global economic environment of sluggish growth and very low yields remains tough. It is in these tough times that protecting capital is vital, and the fund is managed accordingly Portfolio managers Charles de Kock and Duane Cable as at 30 September 2016

mailto:[email protected]

http://www.coronation.com/



Page 4/4


The Capital Plus Fund should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance

is not necessarily an indication of future performance. The fund is mandated to invest up to 30% (including a maximum exposure of 5% to Africa, excluding South Africa) of its

portfolio into foreign securities and may as a result be exposed to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar

investments in the South African markets. Fluctuations or movements in exchange rates may cause the value of underlying investments to go up or down. Asset allocation is

reflected on a look-through basis. Any African exposure (ex SA) is reflected under international assets. The fund is managed in line with Regulation 28 limits, although it is not

required as per the fund’s supplemental deed. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment Schemes Manager approved by the Financial Services

Board in terms of the Collective Investment Schemes Control Act. The Management Company reserves the right to close the fund to new investors if we deem it necessary to limit

further inflows in order for it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending and borrowing. Standard Chartered has been

appointed as trustees for the fund (www.sc.com/za; 011-2176600). Coronation is a full member of the Association for Savings & Investment SA (ASISA).




















The base fee of the fund has been increased by 0.15% and an absolute performance fee of up to 1% was removed. Our expectation is therefore that, while the outcome on the TER

in any given period is uncertain, the average TER over the course of a market cycle will be lower.











IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION CAPITAL PLUS FUND




FEE CHANGE




CORONATION BALANCED PLUS FUND


Page 1/4


Balanced Plus aims to achieve the best possible investment growth for

retirement savers (within the constraints of Regulation 28 of the Pension

Funds Act) over the long term.

Balanced Plus can invest in a wide variety of assets, such as shares, bonds,

listed property and cash, both in South Africa and internationally.

The fund complies with Regulation 28, which limits the exposure of

retirement investors to certain asset classes. For example, shares may never

comprise more than 75% of the fund’s portfolio, while exposure to property

and foreign assets (excluding Africa) is limited to 25% each.

The fund is mandated to use derivative instruments for efficient portfolio

management purposes.

As Balanced Plus aims to maximise long-term returns, it will typically have a

strong bias towards shares, which offer the highest expected growth over

the long run. The fund’s managers actively seek out attractively valued

shares that may achieve strong returns over periods of five years and longer.

While shares usually offer the best investment return, this comes with the

greatest risk of short-term losses. The fund’s investment in shares is

therefore carefully balanced with other assets (including cash, bonds and

property) to ensure that risk is moderated. Returns from these assets are not

as volatile as shares, and will not always move in the same direction (up or

down) at the same time, making the fund less risky than a pure equity fund.

Given the care taken to manage risk and to ensure that the best possible

returns can be achieved from a range of diverse investments, it is unlikely

that the Balanced Plus fund will lose money over the longer term. However,

the fund may produce negative returns in extreme years, albeit at a lower

level than a fund that is only invested in shares.

The recommended investment term is five years and longer.

Investors who are saving for retirement, and:

can stay invested for at least five years (preferably longer);

have to choose a fund for their retirement annuity, provident fund, preservation fund or pension fund, and are looking for an investment that balances long-term growth with moderate levels of risk.

An annual fee of 1.25% (excl. VAT) is payable.

Other costs that are incurred in the fund include fees payable to

unconnected international fund managers on a portion of assets situated

offshore as well as trading, custody and audit charges. All performance

information is disclosed after deducting all fees and other portfolio costs.


More detail is available on www.coronation.com

Launch DateLaunch DateLaunch DateLaunch Date 15 April 1996


BenchmarkBenchmarkBenchmarkBenchmark Composite: 52.5% equity, 22.5% bonds, 5% cash, 20% international

Fund CategoryFund CategoryFund CategoryFund Category South African – Multi-asset – High Equity


Income DistributionIncome DistributionIncome DistributionIncome Distribution March & September


Bloomberg CodeBloomberg CodeBloomberg CodeBloomberg Code CORBALN


JSE CodeJSE CodeJSE CodeJSE Code CORB




HOW LONG SHOULD INVESTORS REMAIN INVESTEDHOW LONG SHOULD INVESTORS REMAIN INVESTEDHOW LONG SHOULD INVESTORS REMAIN INVESTEDHOW LONG SHOULD INVESTORS REMAIN INVESTED????





KARL LEINBERGER

BBusSci, CA (SA),

CFA

CORONATION BALANCED PLUS FUNDCLASS A as at 31 October 2016


9664.91 centsNAV



Fund category South African - Multi Asset - High Equity

Launch date 15 April 1996

Benchmark Composite (52.5% equity, 22.5% bonds, 20% international,

5% cash)

Portfolio manager/s Karl Leinberger

PORTFOLIO DETAIL





43.6%Equities

Oil & Gas 0.0%


Industrials 1.3%

Consumer Goods 8.9%

Health Care 0.7%



Financials 8.0%

Derivatives 3.4%

Unlisted 0.0%


12.2%Real Estate

13.5%Bonds

0.6%Commodities

3.4%Cash


24.4%Equities

0.5%Real Estate

0.2%Bonds

0.0%Commodities

1.2%Cash










0.9% (1.5)%(0.5)%Latest 1 year

3.7% (3.4)% 0.3%Year to date



5.9%Naspers Ltd


2.9%INTU Properties

2.8%Steinhoff International H NV


2.2%Fortress Income Fund Ltd A

2.1%Coronation African Frontiers Fund

2.1%Mondi Limited

1.8%Northam Platinum Ltd



30 Sep 2016 03 Oct 2016 101.10 63.25 37.85

31 Mar 2016 01 Apr 2016 76.52 54.68 21.84

30 Sep 2015 01 Oct 2015 92.93 64.18 28.75

31 Mar 2015 01 Apr 2015 77.96 55.40 22.56

BenchmarkFund






Fund Date Range

Highest annual return Aug 2004 - Jul 2005 49.3%

Lowest annual return Sep 1997 - Aug 1998(17.4%)



(4.1)% 0.3% 5.4% 0.9% 3.5% (4.4)% 1.5% 2.5% (1.9)% (2.8)%Fund 2016 0.3%

1.9% 2.9% (0.2)% 3.0% (1.2)% (1.5)% 0.8% (1.5)% (0.9)% 5.5% (1.7)% 0.8%Fund 2015 8.1%

(0.1)% 2.1% 0.6% 0.8% 2.4% 1.6% 1.0% 0.4% (0.8)% 0.3% 1.3% 0.8%Fund 2014 10.9%

5.3% 0.1% 2.2% (0.7)% 7.6% (3.9)% 3.7% 1.3% 3.2% 2.0% 0.2% 2.7%Fund 2013 25.6%

2.7% 1.1% 1.3% 1.7% (1.1)% 0.2% 1.9% 2.9% 1.4% 3.5% 1.9% 1.0%Fund 2012 20.1%

0.4% 0.8% 0.2% 1.5% 0.8% (1.5)% (0.9)% 0.2% (0.1)% 5.0% 0.3% 0.1%Fund 2011 6.8%

(0.9)% 1.2% 3.8% 0.8% (2.7)% (1.3)% 5.0% (1.0)% 5.1% 2.2% (0.2)% 2.7%Fund 2010 15.4%





Page 3/4



The fund outperformed its benchmark by 0.1% per annum over a rolling five-year period (14.5% versus 14.4% per annum) and by 1.9% since inception (15.7% versus 13.8% per annum). It is one of the top-performing funds in its sector over all meaningful periods. For the third quarter of 2016, the MSCI All Country World and MSCI Emerging Markets indices returned 5.3% and 9.2% respectively in US dollars. Locally, the JSE All Share Index returned 7.6% in dollars, but rand appreciation (in line with other emerging market currencies) meant that the rise in local currency terms was more muted at 0.6% over the same period. Commodity prices, in general, ended the quarter virtually unchanged in US dollars: oil was down 1.3%, platinum gained 0.3% and copper rose slightly by 0.2%. Notwithstanding the benign moves in commodity prices and strength of the rand, resource shares performed well: the local resources index returned 8.1%, outperforming industrials (-2.1%) and financials (0.8%). The longer-term divergence in performance of resources relative to industrials and financials remains significant. Not only has the resources index lagged industrials and financials over three, five and ten years, but it has also underperformed cash over these time periods. Nearly eight years since the global financial crisis, interest rates remain close to zero in most major economies and even negative in others. The world’s major central banks are committed to maintaining the status quo of unconventional monetary policy. The US Federal Reserve has once again delayed hiking rates while the European Central Bank and Bank of Japan continue to apply quantitative easing. Highly accommodative monetary policy represses the cost of capital and serves as a tax on the savings industry. This lack of yield encourages risk-taking as capital scours the globe in search of the best opportunities. This has the effect of distorting asset prices across the spectrum – equities, bonds, property, and currencies. This has resulted in the current disconnect between strong financial markets and tepid growth in most major economies. While monetary policy has succeeded in buoying financial markets, very little of the heavy lifting by way of fiscal and structural reform has taken place. While central bankers may have averted the great recession from becoming a depression, they are potentially sowing the seeds for another crisis in the years ahead. At the time of writing, Theresa May, the UK prime minister, has announced she will start formal negotiations for Britain to leave the European Union by March 2017. Once she triggers Article 50, she will have two years to negotiate a new trade deal with the EU. This has once again rekindled uncertainty as market participants speculate about the terms of the UK’s departure. This uncertainty is likely to result in central bankers erring on the side of caution and keeping interest rates lower for even longer. Domestically, economic growth remains subdued with risk to the downside given the backdrop of a weak global economy, instability caused by political infighting and the risk of a credit downgrade to junk status. Recent rand strength has improved inflation expectations and together with weak economic growth, this means that the SA Reserve Bank is unlikely to hike interest rates further. We believe domestic equities are moderately attractive. While the JSE All Share Index is near its peak in rand terms, it has basically tracked sideways for the last five years in US dollar terms. We believe the global businesses listed in SA are attractively valued and, as such, our portfolios have healthy weightings in stocks such as Naspers, Steinhoff International Holdings, British American Tobacco and Anheuser-Busch InBev. Resource shares have performed strongly year-to-date as commodity prices recovered. Our funds were well positioned to capture this bounce, given our overweight in resource shares. Notwithstanding the recent outperformance, we believe resources remain attractive based on our assessment of fair value. However, given the uncertainties around Chinese demand, one has to manage this risk by ensuring that the weighting is sized appropriately. Our preferred holdings remain Mondi, Anglo American and the low-cost platinum producers, Northam and Impala Platinum. Both SA gold and platinum miners face enormous challenges and cost pressures (such as real increases in both electricity tariffs and labour costs without the corresponding gains in productivity). The SA platinum producers mine approximately 70% of world’s platinum supply. This affords them some

pricing power. Metal prices will ultimately have to adjust higher to reflect these cost pressures in order to incentivise platinum miners to expand production to meet demand. The same is not true for gold. SA mines a tiny portion of world’s gold supply; the world does not need our gold. Prior to the recovery in the gold price, SA gold miners faced enormous pressure; balance sheets were under immense strain and many were either facing a rights issue or closure. This prompted management to run these businesses for cash – production was high-graded (at the expense of the life of the mine) and exploration capital expenditure was culled. While this is good for near-term cash flow and profitability, it is negative long term. Mines face a declining production profile – if they don’t replace production (by sinking new shafts, as an example), unit costs will eventually blow out as lower production is spread over a similar fixed cost base. This will be detrimental to profitability. We thus remain negative on SA gold miners. Given the weak domestic economy, it will be a challenge for the average business to defend, let alone grow, earnings in real terms. In such an environment, high-quality businesses thrive and take market share from the weaker ones. To this extent, we hold reasonable positions in food retailers and producers as well as selected consumer-facing businesses (Foschini and Woolworths). These businesses are well managed and trade below our assessment of fair value. Banks returned 10% for the quarter, outperforming the broader financials index. While banks are effectively a geared play on a weak domestic economy, we believe that this is more than discounted in the current share prices. Valuations are attractive on both a price-to-earnings and price-to-book basis. These businesses are well-capitalised, well-provided for and trade on attractive dividend yields. Our preferred holdings are Standard Bank, Nedbank and FirstRand. Life insurers returned -1.5% for the quarter. Our preference remains Old Mutual and MMI Holdings, both of which trade on attractive dividend yields and below our assessment of their intrinsic value. In a low-growth, low-yield environment, equities remain our preferred asset class for producing inflation-beating returns. We prefer global to domestic equities on the basis of valuation and remain at the maximum 25% offshore limit in our global balanced funds. We believe the current rand/dollar exchange rate to be fairly valued. The bond market returned 3.4% for the quarter, outperforming cash, which yielded 1.8%. Inflation-linked bonds yielded 0.5% for the quarter, underperforming nominal bonds. We believe that yields on global bonds are too low and do not offer value. We also believe that the real returns from cash and bonds are likely to be relatively poor over the long term, both from a local and global perspective. The fund continues to hold a reasonable position in inflation-linked bonds and selected corporate bonds where we believe that spreads adequately compensate investors for the risk undertaken. Listed property returned -0.7% for the quarter. We expect domestic properties to grow distributions at levels close to inflation over the medium term, even if one assumes an uptick in tenant vacancies. This real growth, combined with a fair initial yield, offers an attractive holding period return. We continue to hold the higher-quality property names, which we believe will produce better returns than bonds and cash over the long term. In conclusion, financial markets are fraught with uncertainty as investor sentiment reacts to the news of the day. During these choppy markets, our long-term time horizon and valuation-driven investment philosophy act as a compass, allowing us to navigate through the noise and make the correct decisions for the benefit of our clients. Portfolio manager Karl Leinberger as at 30 September 2016



Page 4/4


The Balanced Plus Fund should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance

is not necessarily an indication of future performance. The fund is mandated to invest up to 30% (including a maximum exposure of 5% to Africa, excluding South Africa) of its

portfolio into foreign securities and may as a result be exposed to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar

investments in the South African markets. Fluctuations or movements in exchange rates may cause the value of underlying investments to go up or down. Asset allocation is

reflected on a look-through basis. Any African exposure (ex SA) is reflected under international assets. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment

Schemes Manager approved by the Financial Services Board in terms of the Collective Investment Schemes Control Act. The Management Company reserves the right to close the

fund to new investors if we deem it necessary to limit further inflows in order for it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending

and borrowing. Standard Chartered has been appointed as trustees for the fund (www.sc.com/za; 011-2176600). Coronation is a full member of the Association for Savings &

Investment SA (ASISA).






























IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION BALANCED PLUS FUND







CORONATION TOP 20 FUND


Page 1/4


Top 20 aims to outperform the equity market over the long term.

The fund’s managers actively seek out attractively valued shares that could

offer strong long-term growth.

The fund can hold shares in a maximum of 20 companies selected from all

equities listed on the JSE. Its investments will therefore always be

concentrated and limited to shares in large companies listed in South Africa.

While investments in foreign markets are specifically excluded, the fund can

invest in foreign companies that are listed locally. There are no restrictions

on how much exposure the fund can have to different sectors (for example,

to mining, financial or industrial companies). The fund will remain fully

invested in shares at all times. The fund is mandated to use derivative

instruments for efficient portfolio management purposes.

The Top 20 fund focuses on a limited number of shares we believe are

attractively valued and offer superior long-term growth, and avoid those

shares that we view as least attractive. Consequently, its investment

performance will often look very different from that produced by the overall

market.

The fund can only invest in shares that are listed in South Africa. As a result,

it cannot provide diversification into other asset classes or geographies. It

also cannot invest in smaller companies.

Shares can be volatile investments and the risk of capital loss over the short

term is high. However, given its focus on investing only in attractively valued

shares that could offer long-term growth, the fund may preserve capital

better than its benchmark over the long run.

The fund is managed to deliver the best possible returns over the long term;

an investment horizon of ten years or more is therefore ideal. It is not suitable

as a single investment for investors who need to preserve their capital over

five years or less.

Investors who are building wealth, and who

are comfortable with full exposure to shares in large companies listed in SA;

accept that the fund may underperform the market significantly in the short term in pursuit of superior long-term gains;

are holding Top 20 as one of multiple equity funds in their investment portfolio.

An annual fee of a minimum of 0.5% and a maximum of 3.00%, depending

on the fund’s performance, is payable.

If the fund’s return (after fees and costs) is equal to that of its benchmark, a

fee of 1.00% will be charged. We share in 20% of performance above the

benchmark, up to a maximum total annual fee of 3.00%. Performance is

measured over a rolling 24-month period.

When the fund return is below the benchmark over a rolling 60-month

period the fee is discounted to 0.5%.

All fees exclude VAT. Other costs that are incurred in the fund include

trading, custody and audit charges. All performance information is disclosed

after deducting all fees and other portfolio costs. We do not charge fees to

access or withdraw from the fund.


Launch DateLaunch DateLaunch DateLaunch Date 2 October 2000


BenchmarkBenchmarkBenchmarkBenchmark FTSE/JSE Capped All Share Index (CAPI)

Fund CategoryFund CategoryFund CategoryFund Category South African – Equity – General

Regulation 28Regulation 28Regulation 28Regulation 28 Does not comply

Income DistributionIncome DistributionIncome DistributionIncome Distribution March and September


Bloomberg CodeBloomberg CodeBloomberg CodeBloomberg Code CORTP20


JSE CodeJSE CodeJSE CodeJSE Code CNTF








GENERAL FUND GENERAL FUND GENERAL FUND GENERAL FUND INFORMATIONINFORMATIONINFORMATIONINFORMATION

NEVILLE CHESTER

BCom, CA (SA), CFA

PALLAVI

AMBEKAR

CA (SA), CFA

CORONATION TOP 20 FUNDCLASS A as at 31 October 2016


12587.32 centsNAV

1.12% (including a performance fee of 0.25%)Total Expense Ratio


Fund category South African - Equity - General

Launch date 01 October 2000

Benchmark FTSE/JSE Capped All Share Index

Portfolio manager/s Neville Chester and Pallavi Ambekar

PORTFOLIO DETAIL





96.2%Equities


Consumer Goods 15.3%

Health Care 1.9%



Financials 21.7%

3.6%Real Estate

0.2%Cash









(2.7)% 6.7% 3.9%Latest 1 year

2.9% 14.6% 17.5%Year to date


13.3%Naspers Ltd

9.4%Mondi Limited

9.1%MTN Group Ltd


7.6%Anglo American Plc

7.2%Standard Bank Group Ltd

6.9%Steinhoff International H NV

5.5%Impala Platinum Holdings Ltd


4.6%Nedbank Group Ltd



30 Sep 2016 03 Oct 2016 180.76 0.00 180.76

31 Mar 2016 01 Apr 2016 91.32 0.00 91.32

30 Sep 2015 01 Oct 2015 181.47 0.00 181.47

31 Mar 2015 01 Apr 2015 103.05 0.64 102.41

BenchmarkFund






Fund Date Range

Highest annual return May 2005 - Apr 2006 68.9%

Lowest annual return May 2002 - Apr 2003(31.7%)



(1.4)% 4.8% 10.3% 4.3% (1.0)% (2.3)% 4.2% 0.3% 1.8% (4.0)%Fund 2016 17.5%

2.7% 4.2% (2.2)% 5.5% (3.4)% (1.8)% (0.6)% (3.7)% (4.2)% 6.1% (5.6)% (6.2)%Fund 2015 (9.8)%

(2.4)% 4.6% 3.0% 1.3% 1.6% 1.3% 2.1% (2.2)% (3.7)% 0.6% 2.3% (1.6)%Fund 2014 6.8%

3.9% (0.6)% 1.6% (2.1)% 9.4% (6.4)% 6.1% 4.0% 6.0% 2.7% (2.8)% 4.2%Fund 2013 27.9%

5.3% 2.5% (0.6)% 2.8% (4.7)% 2.4% 2.0% 3.4% 2.7% 4.6% 0.1% 4.1%Fund 2012 26.9%

(2.9)% 3.9% 1.3% 2.6% 0.1% (1.8)% (1.6)% (0.4)% (2.9)% 8.3% 0.8% (1.8)%Fund 2011 5.2%

(1.2)% 0.8% 6.7% (0.4)% (4.0)% (4.0)% 9.4% (3.5)% 8.3% 3.2% (2.2)% 7.2%Fund 2010 20.6%

(5.5)% (9.5)% 11.9% 5.1% 8.8% 0.3% 9.4% 4.4% (0.4)% 5.2% (1.3)% 4.8%Fund 2009 35.9%

(7.6)% 8.3% (4.1)% 5.0% 3.5% (6.7)% 0.8% 3.5% (8.8)% (6.9)% 2.1% 2.4%Fund 2008 (9.9)%

6.4% (1.2)% 5.0% 4.0% (0.7)% (1.3)% (1.2)% 1.7% 1.9% 7.7% (5.8)% (2.8)%Fund 2007 13.5%



CORONATION TOP 20 FUND Quarterly Portfolio Manager Commentary

Page 3/4



It has been a strong year of outperformance for the fund, which delivered 14.9% for the 12 months. Its benchmark, the JSE Capped All Share Index, returned 7.2% over the same period. The last quarter was particularly exceptional, with the fund delivering 5.9% alpha. While the fund aims to achieve consistent outperformance over a longer-term time horizon, we caution investors to expect large positive and negative performance numbers over shorter-term time horizons. Our resources positioning has delivered the bulk of the positive returns this year. Holding resources at the beginning of the year was a difficult view to defend. Headlines were pervasively negative and many questioned the sustainability of these business models if spot prices prevailed. Our focus was on company valuations based on normalised commodity prices, which suggested that resources were looking extremely cheap. This view was not indiscriminate. We held shares where underlying commodity exposure was supported by long-term supply/demand fundamentals, and where balance sheets were fairly robust. As such, we not only benefited from the resource rally, but our specific holdings in Anglo American, Exxaro and Impala have outperformed the sector. Despite the recovery we still have a healthy weighting to resources, as valuations on a through-the-cycle basis are still compelling. Our bank holdings have also performed well this year. Recent reported earnings from Standard Bank and Nedbank indicate businesses that have managed to deliver quality earnings growth through good cost containment and conservative provisioning. Capital levels remain healthy, which means that these banks should be able to support decent dividend yields even in a tougher economic environment. A potential downgrade to SA credit by the ratings agencies should have a minimal impact on the banks’ business models, as the majority of their funding is domestic.

MTN continues to face negative headlines out of Nigeria. The most recent allegations are that the company took $14 billion out of Nigeria illegally over the last decade. MTN refuted these claims in a SENS announcement, saying that they are unfounded and without merit. Our calculations suggest that MTN has invested roughly $9 billion in network rollout costs and has paid $5 billion in corporate taxes in Nigeria over the last ten years. These investments far exceed the amounts they have taken out in the form of dividends and management fees. In addition, all repatriations have happened with the approval of the Central Bank of Nigeria and other regulatory authorities. While the headlines remain unhelpful, we feel the investment case for MTN remains intact. Our global industrial holdings in Naspers, Mondi and British American Tobacco have been long-term winners for the fund. We continue to have sizeable positions despite the rerating of these shares. British American Tobacco has continued to deliver solid earnings growth in constant currencies through a combination of pricing power and cost savings. It has continued to invest in building its traditional cigarette brands, but has also developed a suite of next-generation products that provide smokers with a safer nicotine alternative. These investments have not impacted the high cash generation of the company. As such, we expect it to continue delivering decent returns through a combination of earnings growth and increasing dividends. Globally, much uncertainty still remains. The aftermath of Brexit is still playing out, with Theresa May’s latest comments indicating a ‘hard Brexit’ scenario. The US presidential election could also create turmoil in markets. Extreme share price movements around these events often provide us with investment opportunities, as panic and uncertainty result in unwarranted moves. Our long-term investment horizon gives us the conviction to take advantage of these opportunities quickly and decisively when they present themselves. This approach has served us well historically, and should continue to help the fund deliver long-term alpha. Portfolio managers Neville Chester and Pallavi Ambekar as at 30 September 2016

CORONATION TOP 20 FUND


Page 4/4


The Top 20 Fund should be considered a long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily

an indication of future performance. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment Schemes Manager approved by the Financial Services Board in

terms of the Collective Investment Schemes Control Act. The Management Company reserves the right to close the fund to new investors if we deem it necessary to limit further

inflows in order for it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending and borrowing. Standard Chartered has been appointed as

trustees for the fund (www.sc.com/za; 011-2176600). Coronation is a full member of the Association for Savings & Investment SA (ASISA).




















The performance benchmark as well as the period over which performance is measured to calculate potential fee discounts, have changed. We do not expect these changes will

have a material impact on long-term TER.











IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION TOP 20 FUND




FEE CHANGE




CORONATION GLOBAL STRATEGIC USD

INCOME FUND


Page 1/4


The fund aims to achieve a higher return than a US dollar term bank deposit.

It is mainly focused on delivering short-term income.

The fund invests between 75% and 100% of its assets in a wide variety of

fixed income assets. This may include bonds, money market instruments and

other debt securities issued by international governments, banks and other

companies or institutions.

Up to 25% of the fund may be invested in listed property, preference shares

and other forms of hybrid debt or equity instruments.

While the fund may invest in instruments in any currency, its effective

exposure to the US dollar will at least be 75% at all times. The fund is

mandated to use derivative instruments for efficient portfolio management

purposes.

The average duration in the fund will typically not exceed three years.

The fund is tactically managed to secure an attractive income, while

protecting capital.

Its investments are carefully researched by a large and experienced

investment team and subjected to a strict risk management process. The

fund is actively positioned to balance long-term strategic positions with

shorter-term tactical opportunities to achieve the best possible income.

While the fund is managed in a conservative and defensive manner, it is not

guaranteed to always outperform cash over short periods of time, and may

suffer capital losses primarily as a result of interest rate movements or

negative credit events.

Capital growth, if any, will generally come from capital market changes such

as falling interest rates or movements in foreign currencies.

The recommended investment term is twelve months and longer. Given its

limited exposure to growth assets, the fund is not suited for long investment

terms.

Conservative investors who are looking for an intelligent alternative to US

Dollar bank deposits.


All fees exclude VAT. Other costs incurred in the fund include fees payable

to unconnected international fund managers on a portion of assets situated


information is disclosed after deducting all fees and other fund costs.



Fund Launch DateFund Launch DateFund Launch DateFund Launch Date 30 December 2011

ClassClassClassClass A

Class TypeClass TypeClass TypeClass Type Accumulation

Fund DomicileFund DomicileFund DomicileFund Domicile Ireland

Morningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund Category Global Bond – USD Hedged

Currency Currency Currency Currency US Dollar

BenchmarkBenchmarkBenchmarkBenchmark 110% of USD 3-month LIBOR

Investment MinimumInvestment MinimumInvestment MinimumInvestment Minimum US$15 000

BloombergBloombergBloombergBloomberg CORGSUA

ISINISINISINISIN IE00B4TFHM43

SEDOLSEDOLSEDOLSEDOL B4TFHM4


WHAT WHAT WHAT WHAT DOES THE FUNDDOES THE FUNDDOES THE FUNDDOES THE FUND INVEST IN?INVEST IN?INVEST IN?INVEST IN?







MARK LE ROUX

BCom

STEPHEN PEIRCE

BA (Economics), MA

(Finance), UKSIP

NISHAN MAHARAJ

BSc (Hons), MBA

CORONATION GLOBAL STRATEGIC USD INCOME FUND

CLASS A as at 31 October 2016

USDCurrency

Launch date 30 December 2011

Benchmark 110% of USD 3-month LIBOR

Portfolio manager/s Mark le Roux, Stephen Peirce and Nishan

Maharaj

Fund size US$ 199.97 million

11.45NAV

Total Expense Ratio 1.03%


PORTFOLIO DETAILPERFORMANCE AND RISK STATISTICS

GROWTH OF A $100,000 INVESTMENT PORTFOLIO COMPOSITION

30.2%

Corporate Bonds

(floating)

44.5%

Corporate Bonds

(fixed)

2.4%

Cash

2.5%

Property

4.3%

Money Market NCDs

(floating)

16.1%

Government Bonds

As at 31 Oct 2016

PERFORMANCE RISK STATISTICS SINCE LAUNCH





0.8% 1.0% 1.7%Latest 1 year

0.7% 1.3% 2.0%Year to date

BenchmarkFund






Fund Date Range

Highest annual return Jan 2012 - Dec 2012 7.1%

Lowest annual return Mar 2015 - Feb 2016(1.0%)



(0.5)% 0.0% 1.1% 0.4% 0.2% (0.2)% 0.6% 0.2% 0.3% (0.1)%Fund 2016 2.0%

0.4% 0.2% (0.2)% 0.4% (0.2)% (0.2)% 0.3% (0.5)% (0.3)% 0.4% 0.2% (0.4)%Fund 2015 0.1%

(0.2)% 0.6% 0.3% 0.6% 0.5% 0.1% 0.2% (0.1)% (0.4)% 0.3% 0.1% (0.3)%Fund 2014 1.7%

Client Service: Email: [email protected] Website: www.coronation.com+44 (0)20 7389 8840 Minimum Disclosure Document Page 2/4


CORONATION GLOBAL STRATEGIC USD INCOME FUND Quarterly Portfolio Manager Commentary

Page 3/4



Central bank activities continued to provide strong support for income-producing assets during the quarter. While core developed market bond markets saw yields bottom in early July and rise modestly thereafter (leaving investors with minimal returns), better returns were to be found in higher-yielding markets such as emerging markets and, in particular, corporate bonds. Central bank comments continued to be agonised over by investors who have become increasingly accustomed to the backstop they have provided. There appears to be a subtle shift in policymakers’ language, highlighting the limitations of further monetary policy actions and once again raising the prospect of a return to fiscally driven support. Despite its defensive stance the fund performed strongly, returning 1.08% during the quarter versus a benchmark return of 0.22%. In the US, investors spent the majority of the quarter speculating as to whether the Federal Open Market Committee would increase the federal funds rate at its meeting on 21 September. In the event they left rates unchanged, but three voting members dissented and voted for a hike. The read-through was a hawkish one, and investors now view the likelihood of a hike in December to be 60%. However, the US Federal Reserve’s expectation for future rates (its dot plot) once again fell: the median expectation for 2017 is now 1.1%, while it is 1.9% for 2018 – a full 0.5% lower than before. The long-term neutral rate also came down to 2.9% from 3%. US yields rose modestly during the quarter (the 10-year yield rose by 0.15% to 1.6%), which was partly a reflection of the continued strength in the labour market but was also an acknowledgement that the weakness in inflation has moderated. Breakeven inflation rates widened (the 10-year rate is up 0.2% to 1.63%) and the breakeven curve steepened as the extremely low levels of implied long-term inflation unwound slightly. US Treasuries have seen net outflows from central banks and sovereign wealth funds, as these participants have required the funds to support their economies and currencies. In the last six months, however, these offshore flows have been replaced by buying from portfolio managers whose local yields have fallen to extremely low levels due to quantitative easing (QE). At the beginning of 2016 a Japanese investor buying 10-year US Treasuries could earn an extra 1% yield over local Japanese 10-year yields by hedging US Treasuries back into yen. However, because of the recent rise in hedging costs, this extra yield has now completely evaporated. This is also the case for European-based investors. The removal of this valuation support should begin to weigh on the market and is another factor that makes us cautious of valuations at these levels. The US election also injects plenty of uncertainty into the mix. It seems likely that fiscal policy will be more expansive going forward (especially under a Trump administration), which is another reason to be cautious of valuations. Changes to US money market regulations that come into effect in mid-October have certainly added to the rising costs of hedging for non-US based investors. The cumulative move out of money market funds (whose principal holdings tend to be more bank and corporate orientated) and into funds whose principal holdings will be government-based is likely to be close to a trillion dollars. This has had the impact of boosting interbank funding costs and pushing up the US Libor. This rise in the Libor has been to the benefit of US floating-rate notes, and their spreads have performed strongly against the rising Libor levels. Rising funding costs have been most keenly felt by non-US banks (in particular the Japanese) which can’t access US depositors in the same way. This appears, however, only to be a contributory factor to what is a wider US dollar shortage. It is thus a little perplexing that the US dollar itself hasn’t been stronger on the back of this, but that may be the end result. Dislocations in funding markets also spill over into the prices of forward-quoted rates of foreign exchange. In the past, these dislocations would have been addressed by investment banks arbitraging away opportunities but, as the Bank for International Settlements observes, the new regulatory capital regimes for banks mean arbitrage is no longer a costless activity. This presents opportunities for other investors. In recent months we have utilised the widening foreign exchange basis to invest in short-dated Japanese, European and sterling-denominated bonds, hedging them back into US dollars in the forward market. This has allowed us to lock in significantly higher yields than those available in US dollars, while maintaining very high levels of credit quality. Japan has been at the forefront of unconventional monetary policy in recent years and the Bank of Japan’s (BoJ) September meeting elicited a lot of interest, as previous policies have to date failed to achieve their aim of boosting inflation. The BoJ has now given itself more flexibility by choosing to target the yield curve (specifically, a 10-year yield of 0%). This opens up the possibility of cutting short rates deeper into negative territory and enacting reverse twist operations (selling long bonds to buy shorter ones). The effect has been to steepen the longer end of the yield curve (20 bps steeper during the last three months), something that should help the banking sector and a theme that is attracting attention in other core markets. Meanwhile in Europe, the European Central Bank (ECB) made no changes to its policies when it met in September, adding that it believed the monetary policy transmission mechanism was working. In the near term the two biggest challenges facing Europe are the Italian referendum to be held on 4 December and the potential for problems in the banking sector to re-emerge. We expect policy to remain very accommodative of corporate bonds within Europe.

In the UK bonds performed strongly as the Bank of England (BoE) cut its base rate by 0.25% to 0.25% in early August and signalled that it would be prepared to do more if required. In addition, the BoE also indicated that it would expand its balance sheet by as much as £170 billion via gilts (£60 billion over six months) and corporate bonds (£10 billion over 18 months), as well as via a bank lending programme (up to £100 billion). In recent months, economic activity has held up better than feared. In the last few weeks, however, it has become clear that the UK will follow a harsher Brexit line rather than trying to compromise on key EU policies, and will also be less sympathetic to the concerns of the City of London. This harsher stance has coincided with renewed weakness in sterling. Emerging markets were well supported both in local currency and in hard currency terms by investors seeking out the higher yields they offer. The stimulus unleashed by China in late 2015 is still working its way through the system and credit creations have been very strong this year, as have property prices. Commodity prices would have certainly derived some support from China, and more stable prices have supported emerging market sentiment more widely. The strong run by emerging market corporate bonds now means that they are trading very close to similar-rated entities from developed markets. Emerging market issuance in the third quarter of $84 billion was the second highest on record. The build-up of debt within emerging markets is a concern for the long term, and the most concerning of these is China. Emerging markets are, however, not the only area where debt is rising, as robust corporates issuance was once again a feature. Investment-grade issuance in the dollar market has reached $1.2 trillion year-to-date, of which 34% was A-rated and 34% BBB-rated. Investor appetite has remained robust, and excess returns above government securities of 1.7% in the third quarter and 3% year-to-date have only further fuelled demand. US high-yield returns were even stronger, up 5.5% in the third quarter. High-yield spreads now average 5% (from 9% in February), even as defaults have picked up and recovery rates have fallen. In Europe, credit also performed well as the ECB bond buying programme continued to drain liquidity from the market and squeeze prices higher. Meanwhile in the UK, the BoE’s announcements have just begun a similar dynamic and the net effect is likely to be larger given the smaller market; in the third quarter UK corporate bonds (albeit with a longer duration) outperformed government securities by 3.8%. In the foreign exchange markets the US dollar, euro and yen all traded in tight ranges, as investors focused on the respective central bank meetings. Sterling remained one of the weakest currencies, losing another 3% in value against the dollar – and it may yet fall further if the harsher Brexit line is maintained. Elsewhere, steadier commodity and rising oil prices combined with investors seeking out higher-yielding assets to support emerging market currencies. Mexico was a noticeable exception to this trend (down 6% against the US dollar), as its proximity to the US and the hostility directed at it by Trump weighed on it as Trump’s poll ratings rose. China, meanwhile, held its currency broadly stable ahead of its admittance to the IMF’s Special Drawing Rights basket of currencies on 1 October. Global property stocks posted modest gains during the quarter (+1.5%) after giving up some of their earlier gains as bond yields rose slightly and the wider equity market softened slightly. QE and investors seeking out yield remained a key supporting factor of the market. Asia proved once again to be the strongest region, as the weakness in fundamentals that saw the region lag in 2015 appears to be improving. The UK recovered some of its post-Brexit losses and Europe continued to ride the central bank wave; both regions were up 5% for the quarter. The US was the main laggard for the quarter (-1%) and is closest to the headwinds of rising rates (with no new QE support), which comes against the background of fairly full valuations metrics. The fund has, in recent months, been relatively conservative in its exposure to property (around 2%) but increased its exposure to UK names modestly in late September. The fund also sold its holding in Cromwell in July and increased its exposure to MAS Real Estate via a capital raise during the quarter. The fund remains conservatively positioned with a low sensitivity to interest rates, relatively low exposure to property, and corporate bond exposure that is on the whole short dated and of a high credit quality. The fund has increased its exposure to non-US listed instruments to around a third of its total holdings. For the most part, this non-US exposure takes the form of short-dated, high-quality instruments in Japan, Europe and the UK that have been hedged out to take advantage of the increased returns available to those willing to lock in elevated levels of foreign exchange basis. While the muddle-through scenario remains the most likely scenario, we remain of the opinion that implied volatility will likely prove to be too low given the potential levels of uncertainty that markets face. As such, we have purchased some credit options to protect against any significant widening in credit spreads into the year-end. Portfolio managers Mark le Roux, Stephen Peirce and Nishan Maharaj as at 30 September 2016

CORONATION GLOBAL STRATEGIC USD INCOME FUND Important Information

Page 4/4


Unit trusts should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is not

necessarily an indication of future performance. The fund is mandated to invest up to 100% of its portfolio into foreign securities and may as a result be exposed to macroeconomic,

settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in exchange rates

may cause the value of underlying investments to go up or down. The yield shown is an estimate (gross of fees) in part based on market assumptions and forecasts. The yield is

calculated by taking the interest and income receivable of all the instruments in the fund divided by the net asset value, expressed as a nominal annual rate. It is provided to give

an approximate indication of the achievable yield for an investment made at the reporting date. . Actual experience may differ, based on changes in market values, interest rates

and changes in costs actually experienced during the investment period. Coronation reserves the right to close the fund to new investors if we deem it necessary to limit further

inflows in order for it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending and borrowing. Coronation Global Fund Managers (Ireland)

Limited is authorised in Ireland and regulated by the Central Bank of Ireland. The fund is approved under Section 65 of the Collective Investment Schemes Control Act by the

Financial Services Board of South Africa.

Northern Trust Fiduciary Services has been appointed as the fund’s trustees (www.northerntrust.com; t: +353-1-542-2000), and its custodian is JP Morgan Administration Services

(Ireland) Limited (www.jpmorgan.com; t: +353-1-612-4000). Coronation is a full member of the Association for Savings & Investment SA (ASISA).

Unit trusts are traded at ruling prices set on every business day. Fund valuations take place at approximately 17h00 each business day (Irish Time) and forward pricing is used.

Instructions must reach Coronation before 12h00 (SA Time) one day prior to the dealing date. You can expect to receive withdrawal payouts three business days after the dealing

day. Large investments or redemptions (exceeding 5% of fund value) may be subject to an anti-dilution levy to defray dealing costs and expenses. This levy, where applicable, is

applied fully for the benefit of the fund.












The base fee of the fund has been reduced by 0.10%. Our expectation is therefore that the TER will decrease in future.






Additional information such as fund prices, brochures, application forms and a schedule of fund fees and charges is available on www.coronation.com. You will also find additional

information on the considerations pertinent to investing in a fund denominated in a foreign currency and domiciled in an offshore jurisdiction.





IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION GLOBAL STRATEGIC USD INCOME FUND

HOW ARE UNITS PRICED AND AT WHAT PRICE WILL MY TRANSACTION BE EXECUTED?



FEE CHANGE




CORONATION GLOBAL CAPITAL PLUS

FUND [HOUSEVIEW CURRENCY] Fund Information as at 31 October 2016

Page 1/4


Global Capital Plus is in the first instance managed to achieve reasonable

investment growth over time. Our intent is that the fund should meaningfully

outperform an investment in developed market cash over time. In addition,

we aim to preserve capital over any twelve month period.

Global Capital Plus can invest in all listed asset classes including shares,

listed property, bonds and cash. The fund will primarily have exposure to

developed economies (including the US, Europe and Japan) but can also

invest in emerging markets.

The fund is managed to suit the needs of more conservative investors who

want to invest for longer than three years. Exposure to growth assets (shares

and listed property), which pose more risk than income assets, will typically

not exceed 50%.

The intent is to keep the fund fully invested in foreign assets at all times. It

will have exposure to a variety of currencies, with a general bias towards

developed markets, specifically to the US dollar and euro.

The fund is allowed to make use of exchange traded funds and financial

instruments to implement its investment views.

Global Capital Plus aims to protect capital over any 12-month period in all

market conditions, while offering real investment growth over the long term.

However, capital is not guaranteed.

The fund invests in a broad range of different assets and many countries.

Its exposure to shares, which offer the best long-term investment growth,

could help maximise returns. However, with this long-term growth comes

short-term volatility, which may affect the fund’s returns. This risk is

mitigated to some extent as growth asset exposure will not exceed 50%.

Global currency movements may intensify investment gains or declines.

An investment term of more than three years is recommended.


seek a single international investment that will give them access to some of the best opportunities around the globe, while aiming to protect their capital;

require conservative exposure to offshore markets;

do not require an income from their investment.


If the fund performance over any 24-month period is negative in USD, the

fee is reduced to 0.85%. All fees exclude VAT.

Other costs that are incurred in the fund include administrative, trading,

custody and audit charges. Performance information is disclosed after

deducting all fees and other portfolio costs.


Large investments or redemptions (exceeding 5% of fund value) may be

subject to an anti-dilution levy to defray dealing costs and expenses. This

levy, where applicable, is applied fully for the benefit of the fund.


Fund Fund Fund Fund Launch DateLaunch DateLaunch DateLaunch Date 1 September 2009

ClassClassClassClass D


Class Launch DateClass Launch DateClass Launch DateClass Launch Date 5 May 2011


Morningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund Category USD – Moderate Allocation

ListingListingListingListing Irish Stock Exchange


BenchmarkBenchmarkBenchmarkBenchmark USD 3-month LIBOR + 1.5%


Bloomberg Bloomberg Bloomberg Bloomberg CORGLTD

ISINISINISINISIN IE00B3LSMH47





WHO WHO WHO WHO SHOULD CONSIDER INVESTING SHOULD CONSIDER INVESTING SHOULD CONSIDER INVESTING SHOULD CONSIDER INVESTING IN THE FUNDIN THE FUNDIN THE FUNDIN THE FUND????




TONY GIBSON

BCom

LOUIS STASSEN

BSc, BCom (Hons), CFA

NEIL PADOA

BEconSci (AcSci), FFA

CORONATION GLOBAL CAPITAL PLUS FUND [HOUSEVIEW CURRENCY]CLASS D as at 31 October 2016

USDCurrency

Launch date 01 September 2009

Benchmark 100% USD 3-month LIBOR+1.5%

Portfolio manager/s Tony Gibson, Louis Stassen and Neil Padoa

Fund size US$ 1.05 billion

11.32NAV

Total Expense Ratio 1.59% (including a performance fee of 0.28%)



EFFECTIVE ASSET ALLOCATION EXPOSUREGROWTH OF A $100,000 INVESTMENT

32.4%Bonds

30.0%Equities

23.3%Cash

8.5%Property

3.5%Commodities

2.2%Merger

Arbitrage

PERFORMANCE FOR VARIOUS PERIODS TOP 10 HOLDINGS




(0.1)% 3.8% 3.7%Latest 5 years (annualised)

(1.2)% 1.9% 0.6%Latest 3 years (annualised)

2.2% 1.9% 4.1%Latest 1 year

1.9% 3.8% 5.7%Year to date

As at 30 Sep 2016

Alphabet Inc

Amazon.com

Charter Communications

Comcast Corp

Coronation Global Emerging Market Fund

INTU Properties

KKR & Co

Mastercard Inc

SAB Miller Plc

Walgreen

RISK STATISTICS SINCE LAUNCH CURRENCY ALLOCATION

Currency as at 31 Oct 2016 % of Fund

US Dollar 89.5%

Other 11.0%

This fund is available in 3 hedged currency classes (Euro, Pound Sterling & US Dollars) as well as a

Houseview currency class. This is the fact sheet for the Houseview currency D class.

BenchmarkFund






Fund Date Range

Highest annual return Jul 2010 - Jun 2011 17.1%




(2.8)% 1.4% 4.5% 0.9% 0.2% (0.9)% 3.2% 0.4% (0.1)% (1.1)%Fund 2016 5.7%

(0.3)% 2.8% (1.2)% 2.0% (0.9)% (0.9)% (0.7)% (3.2)% (2.0)% 3.6% (0.1)% (1.5)%Fund 2015 (2.4)%

(2.3)% 3.3% (0.3)% 0.4% 1.0% 0.7% (0.5)% 1.0% (3.0)% 0.0% 0.7% (2.2)%Fund 2014 (1.5)%

Client Service: Email: Website: www.coronation.com0800 22 11 77 [email protected] Minimum Disclosure Document Page 2/4


CORONATION GLOBAL CAPITAL PLUS FUND [HOUSEVIEW CURRENCY] Quarterly Portfolio Manager Commentary

Page 3/4



The third quarter, while traditionally quiet with investors in the Northern Hemisphere going on their summer vacation, proved to be even less eventful than in previous years. While the Brexit vote jolted markets towards the end of June 2016, the next three months were spent speculating on the nature of the UK’s exit from the European Union, as well as ongoing changes in interest rate expectations in the US. The latest thinking around Brexit is that the UK will try to negotiate a fair, if slightly sympathetic deal, while European politicians are increasingly calling for conditions more aligned with a ‘hard’ exit. This has led to the pound continuing to weaken over the last few weeks, resulting in new 30-year lows as we speak. With regards to interest rate expectations in the US, the latest forward curve indicates a slight probability of a rate increase in November, and an almost certain rate hike in December. We concur with these views. Equity markets performed well over the period, although it must be borne in mind that they were coming off relative lows after the Brexit vote. The MSCI All Country World Index (ACWI) returned 5.3% over the quarter, with the emerging markets index returning 9.2%. Year-to-date, the ACWI has returned 7.1%, significantly below the emerging markets return of 16.4%. Close to half of this performance has been due to emerging market currencies strengthening against the US dollar, after sustained weakness over the previous few years. However, over longer time periods, developed markets have consistently outperformed the emerging universe. The fixed interest market had a tougher quarter, impacted by the change in investor expectations for interest rate normalisation. Markets are weary of the impact of quantitative easing, and yields moved up (and prices down) when it appeared that Europe might near the end of central bank intervention in the bond markets. Listed property underperformed equity markets for the same reason. It is interesting to note that property is now a separate category in the sector breakdown of global indices. In the short term, this has led to some additional demand for the sector. The gold price barely moved over the period, although it dropped quite sharply following quarter-end. Industrial metals had a strong quarter, propelling equities in the material sector higher. Oil prices, however, were basically flat. The fund performed well over the quarter, returning 3.59% and outperforming its benchmark after fees by a significant margin of 3.01%. Year-to-date the fund has returned 6.87%, again comfortably ahead of its benchmark by 5.22%. Over five years the fund has delivered 5.22% per annum, a very credible performance in a low-return environment and a handsome outperformance of its benchmark’s very anaemic returns. Our equity holdings outperformed the ACWI handsomely over the last quarter, as well as over the last 12 months, and have contributed strongly to the fund’s good performance. Over the last quarter or two our property holdings detracted in relative terms, but returns were still positive in absolute terms. In addition, over all longer time periods, property has been a very strong contributor. Our credit holdings did well over the shorter and longer term. As we keep emphasising, we hedge out the interest rate risk in these credit positions, as we continue to be very negative about potential returns from government bonds in a more normalised interest rate scenario. Our position in physical gold added positively over the last year, but our exposure to pound sterling detracted significantly.

Within our equity holdings over the last quarter, our holdings in alternative asset managers finally contributed positively, with some other long-term holdings like Charter and Qualcomm also fulfilling some of their anticipated potential. Our other IT stocks like Amazon, Alphabet and Priceline also performed well. Measured since the beginning of the year the biggest contributors have been Estácio and Kroton, our holdings in the Brazilian educational sector, which announced a merger after an agreed takeover by Kroton (covered in an earlier commentary). Other winners included Apollo Global Management, Tata Motors, Amazon and Urban Outfitters. The biggest detractors were TripAdvisor (after disappointing results), Pershing Square (due to ongoing disappointment around the Valeant Pharmaceuticals holding), and LPL Financial. Apart from LPL Financial, where we sold because we lost faith in management’s ability to tackle their cost base in light of disappointing revenues, we continue to believe in these holdings. We reduced our equity allocation over the last few months, and ended the quarter with an effective 30% exposure to equity. This is significantly below the 36% exposure we had after the sell-off in February. The bulk of this reduction was due to purchased put options on the US market. While we are mindful of the cost of these instruments, we felt that they offered an attractive risk/reward trade-off for the first time in a long time. We have also reduced our position in listed property, as we perceive stock prices around the world to be quite fully valued. The one exception is in the UK, where we continue to hold significant positions in light of the price weaknesses in the sector after the Brexit vote. We have been alarmed by some of the more recent political utterances, and are monitoring the situation closely. We have also reduced our exposure to credit, as these markets have bounced back strongly after the February 2016 correction. We have increased the fund’s exposure to physical gold, and intend to build this position as a portfolio risk diversification tool. In a world where the competitive devaluation of currencies seems to be viewed by politicians as a panacea to solving competitive pressures in the economy, we believe gold holds additional attractive qualities. A relatively new stock in the portfolio, Tempur Sealy International, provided a lot of price action since its inclusion less than a year ago. The company is one of the two leading mattress manufacturers in the US – and for that matter, the world. It owns strong brands covering the whole spectrum of price points, but is particularly strongly positioned at the top end of the range with the Tempur brand. What attracted us to the stock was that an activist investor took control of the Board through a hostile proxy vote, and immediately replaced the incumbent top management. The new CEO, Scott Thompson, has an impressive track record. He had particular success at Dollar-Thrifty, where he managed to increase operating margins significantly before the business was sold to one of its larger competitors. The reason why we think his appointment is appropriate, is because we believe that there is a big margin uplift opportunity at Tempur Sealy. When Tempur bought Sealy, its biggest listed competitor, in 2012, poor execution led to a series of manufacturing hiccups at Sealy. This has resulted in current operating margins at Sealy being just over half of what they were at the time of the deal. We are confident that this situation can be rectified through better operational management. Scott has bought equity in the business using his own balance sheet, and has displayed sound balance sheet management. The company’s more recent set of results (after June 2016) looked promising. The share price reacted positively by jumping over 20% in a few days. Unfortunately, just before this quarter-end, the company guided profit growth down again due to a very slow September. As a result of typical short-term investor orientation, the company’s share price dropped by 25% in two days. We managed our position size down after the initial positive price reaction, and could thus take advantage of the price decline. While we acknowledge that pure online players pose a threat to traditional incumbents, we think that the strength of Tempur Sealy’s brands and its innovation will endure. In our view, the company is offering a promising investment opportunity and it currently makes up about 2% of the fund.

Portfolio managers Tony Gibson, Louis Stassen and Neil Padoa as at 30 September 2016

CORONATION GLOBAL CAPITAL PLUS

FUND [HOUSEVIEW CURRENCY] Important Information

Page 4/4


The Global Capital Plus Fund should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past

performance is not necessarily an indication of future performance. The fund is mandated to invest up to 100% of its portfolio into foreign securities and may as a result be exposed

to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements

in exchange rates may cause the value of underlying investments to go up or down. Coronation reserves the right to close the fund to new investors if we deem it necessary to limit

further inflows in order for it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending and borrowing. Coronation Global Fund Managers

(Ireland) Limited is authorised in Ireland and regulated by the Central Bank of Ireland. The fund is approved under Section 65 of the Collective Investment Schemes Control Act by

the Financial Services Board of South Africa.







Performance is calculated by Coronation as at the last day of the month for a lump sum investment using Class D NAV prices. Class A NAV prices were used for the period prior to

the launch of Class D. All underlying price and distribution data are sourced from Morningstar. Performance figures are quoted after the deduction of all costs (including manager

fees and trading costs) incurred within the fund. Note that individual investor performance may differ as a result of the actual investment date, the date of reinvestment of distributions

and dividend withholding tax, where applicable. Annualised performance figures represent the geometric average return earned by the fund over the given time period.

Unannualised performance represents the total return earned by the fund over the given time period, expressed as a percentage.







The base fee of the fund has increased by 0.15% and an absolute performance fee of up to 1.50% was removed. Our expectation is that the average TER over the course of a market

cycle will be lower.












IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION GLOBAL CAPITAL PLUS FUND




FEE CHANGE




CORONATION GLOBAL MANAGED FUND


Page 1/4


Global Managed aims to maximise long-term investment growth by

investing in a range of opportunities available in public asset markets from

around the world. Our intent is to outperform an equity-biased benchmark

over all five year periods.

Global Managed will have a bias towards shares, but can invest in a variety

of assets including listed property, bonds and cash. The fund primarily

invests in developed economies (including the US, Europe and Japan) but

is also mandated to invest in emerging markets.

The intent is to keep the fund fully invested in foreign assets at all times. Its

exposure will be in a variety of currencies, primarily the US dollar, British

pound, euro and yen.

The fund may use exchange traded funds and other financial instruments

(eg. derivatives) to implement specific investment views.

Global Managed aims to achieve the best possible long-term growth for

investors.

Consequently, it will have a sizeable exposure to shares, which typically offer

the best returns over the long run.

Global Managed will only invest in assets we view as being attractively

valued and that could offer strong long-term investment growth. The fund’s

share selection is the result of rigorous international research conducted by

Coronation’s investment team.

While shares typically offer superior long-term returns, this comes with

higher levels of risk and volatility. We have a disciplined approach to

reducing risk, but shares can be volatile investments and may suffer capital

losses over the short term. Global currency movements may intensify

investment gains or declines.

An investment term of more than five years is recommended.


seek a single international investment that will give them access to some of the best opportunities around the globe;

require investment growth over the long term and accept the possibility of volatility and the risk of short-term losses;



All fees exclude VAT. Other costs that are incurred in the fund include

administrative, trading, custody and audit charges. All performance

information is disclosed after deducting all fees and other portfolio costs.

We do not charge any fees to access or withdraw from the fund.


Fund Fund Fund Fund Launch DateLaunch DateLaunch DateLaunch Date 1 March 2010




Morningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund Category USD – Aggressive Allocation


BenchmarkBenchmarkBenchmarkBenchmark 60% MSCI All Country World Index and 40% Barclays Bond Aggregate


BloombergBloombergBloombergBloomberg CORGMFA

ISINISINISINISIN IE00B3PR9321

SEDOLSEDOLSEDOLSEDOL B3PR932









LOUIS STASSEN


NEIL PADOA

BEconSc (AcSci), FFA

CORONATION GLOBAL MANAGED FUNDCLASS A as at 31 October 2016

USDCurrency

Launch date 01 March 2010

Benchmark Composite: 60% MSCI All Country World Index

& 40% Barclays Global Bond Aggregate

Portfolio manager/s Louis Stassen and Neil Padoa


14.80NAV



PORTFOLIO DETAIL

GEOGRAPHIC ASSET ALLOCATION EXPOSURE


GROWTH OF A $100,000 INVESTMENT

31 Oct 2016Sector

Equities 60.5%

North America 47.4%

Europe 6.7%

Asia 3.0%

Latin American 1.7%

United Kingdom 1.1%

South Africa 0.6%

Commodities 1.5%

Property 8.1%

Europe 5.2%

Asia 2.1%

Latin American 0.5%

Japan 0.3%

Bonds 18.6%

North America 7.2%

Europe 5.5%

South Africa 4.5%

Latin American 1.0%

Global 0.4%

Cash 8.6%

USD 5.5%

Other 3.1%

ZAR 0.0%

Merger Arbitrage 2.7%

North America 2.7%

TOP 10 HOLDINGSRETURNS VS BENCHMARK


Google Inc 2.7%

KKR & Co. LP 2.5%

Apollo Global Management 2.5%

Amazon Com Inc 2.4%

Fortress Investment Group 2.3%

Estacio Participacoes SA 1.8%

American Express Company 1.8%

Walgreen Co 1.8%

Schaeffler AG 1.7%

Blackstone Group 1.7%


50.2% (2.1%) 48.0%Since Launch (unannualised)

6.3% (0.2%) 6.1%Since Launch (annualised)


2.9% (2.2%) 0.7%Latest 3 years (annualised)

3.6% (0.1%) 3.5%Latest 1 year

5.7% 0.8% 6.6%Year to date

RETURNS VS MSCI ACWI

MSCI ACWIFund

Since Launch (unannualised) 78.4% 48.0%

Since Launch (annualised) 9.1% 6.1%

Latest 5 years (annualised) 9.7% 6.4%

Latest 3 years (annualised) 4.5% 0.7%

Latest 1 year 2.0% 3.5%

Year to date 4.8% 6.6%

RISK STATISTICS SINCE LAUNCH

BenchmarkFund






Fund Date Range

Highest annual return Jul 2010 - Jun 2011 22.7%

Lowest annual return Mar 2015 - Feb 2016(14.4%)

MONTHLY PERFORMANCE


(6.9)% 2.1% 8.5% 1.0% 0.2% (3.1)% 5.7% 1.0% 0.5% (1.7)%Fund 2016 6.6%

(1.5)% 4.9% (2.1)% 2.4% (0.9)% (0.8)% (1.4)% (7.2)% (4.7)% 7.8% (0.6)% (2.4)%Fund 2015 (7.0)%

(4.3)% 3.6% 0.2% 0.4% 3.0% 2.2% (1.4)% 2.2% (5.1)% 2.1% 2.0% (3.5)%Fund 2014 0.9%



CORONATION GLOBAL MANAGED FUND Quarterly Portfolio Manager Commentary

Page 3/4



The third quarter, while traditionally quiet with investors in the Northern Hemisphere going on their summer vacation, proved to be even less eventful than in previous years. While the Brexit vote jolted markets towards the end of June 2016, the next three months were spent speculating on the nature of the UK’s exit from the European Union, as well as ongoing changes in interest rate expectations in the US. The latest thinking around Brexit is that the UK will try to negotiate a fair, if slightly sympathetic deal, while European politicians are increasingly calling for conditions more aligned with a ‘hard’ exit. This has led to the pound continuing to weaken over the last few weeks, resulting in new 30-year lows as we speak. With regards to interest rate expectations in the US, the latest forward curve indicates a slight probability of a rate increase in November, and an almost certain rate hike in December. We concur with these views. Equity markets performed well over the period, although it must be borne in mind that they were coming off relative lows after the Brexit vote. The MSCI All Country World Index (ACWI) returned 5.3% over the quarter, with the emerging markets index returning 9.2%. Year-to-date, the ACWI has returned 7.1%, significantly below the emerging markets return of 16.4%. Close to half of this performance has been due to emerging market currencies strengthening against the US dollar, after sustained weakness over the previous few years. However, over longer time periods, developed markets have consistently outperformed the emerging universe. The fixed interest market had a tougher quarter, impacted by the change in investor expectations for interest rate normalisation. Markets are weary of the impact of quantitative easing, and yields moved up (and prices down) when it appeared that Europe might near the end of central bank intervention in the bond markets. Listed property underperformed equity markets for the same reason. It is interesting to note that property is now a separate category in the sector breakdown of global indices. In the short term, this has led to some additional demand for the sector. The gold price barely moved over the period, although it has dropped quite sharply following quarter-end. Industrial metals had a strong quarter, propelling equities in the material sector higher. Oil prices, however, were basically flat. The fund performed well over the quarter, outperforming its benchmark after all fees by a significant margin of 3.68%. Year-to-date returns are now 0.42% ahead of benchmark, again a noteworthy performance. Over five years, the outperformance is 1.51% per annum. In addition, it is pleasing to note the absolute performance numbers. Our one-year return of 13.48% net is a very strong number in a low return environment, as is our five-year return of 9.14% per annum. Our equity holdings outperformed the ACWI handsomely over the last quarter, as well as over the last 12 months, and have contributed strongly to the fund’s good performance. Over the last quarter or two our property holdings detracted in relative terms, but returns were still positive in absolute terms. In addition, over all longer time periods, property has been a very strong contributor. Our credit holdings did well over the short and longer term. As we keep emphasising, we hedge out the interest rate risk in these credit positions, as we continue to be very negative about potential returns from government bonds in a more normalised interest rate scenario. Within our equity holdings over the last quarter, our holdings in alternative asset managers finally contributed positively, with some other long-term holdings like JD.com and Qualcomm also fulfilling some of their anticipated potential. Our other IT stocks like Amazon, Alphabet and Priceline also performed well. Measured since the beginning of the year the biggest contributors have been Estácio and Kroton, our holdings in the Brazilian educational sector, which announced a merger after an agreed takeover by Kroton (covered in an earlier commentary). Other winners included Apollo Global Management, Tata Motors, NetEase, Amazon and Urban Outfitters.

The biggest detractors year-to-date have been TripAdvisor (after disappointing results), Pershing Square (due to ongoing disappointment around the Valeant Pharmaceuticals holding), JD.com (resulting from competitive activity in the e-commerce space in China) and LPL Financial. Apart from LPL Financial, where we sold because we lost faith in management’s ability to tackle their cost base in light of disappointing revenues, we continue to believe in these holdings. In most cases, we have used share price weaknesses to increase our holdings. We reduced our equity allocation over the last few months, and ended the quarter with a 60% exposure to equity, in line with the benchmark. This is significantly below the 67% exposure we had after the sell-off in February. We have also reduced our position in listed property, as we perceive stock prices around the world to be quite fully valued. The one exception is in the UK, where we continue to hold an overweight position in light of the price weakness in the sector after the Brexit vote. We have been alarmed by some of the more recent political utterances, and are monitoring the situation closely. We have also reduced our exposure to credit, as these markets have bounced back strongly after the February 2016 correction. We have increased the fund’s exposure to physical gold, and intend to build this position as a portfolio risk diversification tool. In a world where the competitive devaluation of currencies seems to be viewed by politicians as a panacea to solving competitive pressures in the economy, we believe gold holds additional attractive qualities. A relatively new stock in the portfolio, Tempur Sealy International, provided a lot of price action since its inclusion less than a year ago. The company is one of the two leading mattress manufacturers in the US – and for that matter, the world. It owns strong brands covering the whole spectrum of price points, but is particularly strongly positioned at the top end of the range with the Tempur brand. What attracted us to the stock was that an activist investor took control of the Board through a hostile proxy vote, and immediately replaced the incumbent top management. The new CEO, Scott Thompson, has an impressive track record. He had particular success at Dollar-Thrifty, where he managed to increase operating margins significantly before the business was sold to one of its larger competitors. The reason why we think his appointment is appropriate, is because we believe that there is a big margin uplift opportunity at Tempur Sealy. When Tempur bought Sealy, its biggest listed competitor, in 2012, poor execution led to a series of manufacturing hiccups at Sealy. This has resulted in current operating margins at Sealy being just over half of what they were at the time of the deal. We are confident that this situation can be rectified through better operational management. Scott has bought equity in the business using his own balance sheet, and has displayed sound balance sheet management. The company’s more recent set of results (after June 2016) looked promising. The share price reacted positively by jumping over 20% in a few days. Unfortunately, just before this quarter-end, the company guided profit growth down again due to a very slow September. As a result of typical short-term investor orientation, the company’s share price dropped by 25% in two days. We managed our position size down after the initial positive price reaction, and could thus take advantage of the price decline. While we acknowledge that pure online players pose a threat to traditional incumbents, we think that the strength of Tempur Sealy’s brands and its innovation will endure. In our view, the company is offering a promising investment opportunity and it makes up about 2% of the fund.

Portfolio managers Louis Stassen and Neil Padoa as at 30 September 2016



CORONATION GLOBAL MANAGED FUND Important Information

Page 4/4


The Global Managed Fund should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past



in exchange rates may cause the value of underlying investments to go up or down. Coronation reserves the right to close the fund to new investors if we deem it necessary to limit





















The base fee of the fund has increased by 0.15% and a relative performance fee of up to 1.65% was removed. Our expectation is that the average TER over the course of a market

cycle will be lower.












IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION GLOBAL MANAGED FUND




FEE CHANGE




CORONATION GLOBAL OPPORTUNITIES

EQUITY FUND


Page 1/4


Global Opportunities Equity seeks to give investors access to some of the

best fund managers across the globe. Our intent is to outperform its

benchmark over any five- year period.

Global Opportunities Equity is a multi-manager fund which invests in a

limited number of strategies (funds and segregated mandates) managed by

top-quality managers that mainly have exposure to shares in developed

markets. It is also mandated to include some exposure to emerging markets.

Typically, ten to fifteen strategies are included. Each strategy is selected

based on its long-term track record of outperforming the market, its

investment philosophy and the quality of its fund managers.

The fund is mandated to use derivative instruments for efficient portfolio


Global Opportunities Equity invests in equity funds that mostly cover

developed markets, including the US, Europe and Japan.

The fund is well-diversified; it has exposure to a range of different countries,

industries and fund manager styles. The fund managers included in the fund

are well-established and have been rigorously researched and vetted.

While we have a disciplined approach to carefully balance the risks across

the different funds, shares can be volatile investments and there is a

meaningful risk of capital loss over the short term. Global currency

movements may intensify investment gains or declines.




five years or less.


want exposure to some of the world’s top equity funds as part of a diversified investment portfolio;


are overexposed to South Africa and require an international investment;

do not require an income from their investment


All fees exclude VAT. Other costs incurred in the fund include fees payable

to unconnected international fund managers on a portion of assets situated


information is disclosed after deducting all fees and other fund costs.



Fund Fund Fund Fund Launch DateLaunch DateLaunch DateLaunch Date 12 May 2008




Morningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund Category Global – Large Cap Blend – Equity


BenchmarkBenchmarkBenchmarkBenchmark MSCI All Country World Index

Investment Investment Investment Investment MinimumMinimumMinimumMinimum US$15 000

BloombergBloombergBloombergBloomberg CORWDEA

ISIN ISIN ISIN ISIN IE00B2RGGV79

SEDOLSEDOLSEDOLSEDOL B2RGGV7




HOW LONG SHHOW LONG SHHOW LONG SHHOW LONG SHOULD INVESTORS REMAIN INVESTEDOULD INVESTORS REMAIN INVESTEDOULD INVESTORS REMAIN INVESTEDOULD INVESTORS REMAIN INVESTED????


WHAT WHAT WHAT WHAT COSTS COSTS COSTS COSTS CAN CAN CAN CAN I I I I EXPECT EXPECT EXPECT EXPECT TO PAY?TO PAY?TO PAY?TO PAY?



TONY GIBSON

BCom

CORONATION GLOBAL OPPORTUNITIES EQUITY FUNDCLASS A as at 31 October 2016

USDCurrency

Launch date 12 May 2008

Benchmark MSCI All Country World Index

Portfolio manager/s Tony Gibson


14.32NAV



PORTFOLIO DETAIL




31 Oct 2016

Equities 97.4%

56.8%Global (7 Funds)

31.3%Europe (3 Funds)

8.9%North America (2 Funds)

0.4%Asia (1 Fund)

Cash 2.6%


As at 30 Sep 2016

Egerton Capital European Fund

Maverick

Conatus CPTL Overseas

Contrarius Global Equity Fund

Magellan Global Fund






2.0% (3.2)%(1.1)%Latest 1 year

4.8% (3.7)% 1.1%Year to date


BenchmarkFund






Fund Date Range

Highest annual return Apr 2009 - Mar 2010 50.0%

Lowest annual return Jun 2008 - May 2009(23.5%)

MONTHLY PERFORMANCE


(8.8)% 1.3% 7.2% 0.8% 0.3% (3.2)% 5.3% 0.6% 1.0% (2.5)%Fund 2016 1.1%

(1.1)% 4.9% (1.3)% 3.0% 0.2% (2.7)% 0.5% (5.7)% (5.5)% 8.6% (0.7)% (1.5)%Fund 2015 (2.0)%

(3.6)% 4.0% (0.9)% (0.8)% 3.1% 1.7% (0.5)% 1.5% (2.9)% 0.8% 3.1% (1.2)%Fund 2014 4.0%

5.6% 0.9% 2.0% 2.8% 2.0% (3.6)% 4.8% (2.2)% 5.6% 3.3% 1.3% 2.3%Fund 2013 27.2%

5.6% 5.9% 1.0% (0.4)% (9.1)% 3.6% 2.2% 1.6% 3.2% (0.5)% 1.9% 2.5%Fund 2012 18.2%



CORONATION GLOBAL OPPORTUNITIES EQUITY FUND Quarterly Portfolio Manager Commentary

Page 3/4



The fund advanced 7.0% in the third quarter of 2016, against the benchmark return of 5.3%. Over a rolling 12-month period, the fund’s return of 10.2% is behind the benchmark return of 12.0%. Equity markets enjoyed a strong third quarter with the MSCI All Country World Index advancing 5.3% over the period. Investors shrugged off the shock Brexit referendum result late in the previous quarter, as the key central banks continued with their stimulative monetary policies. As widely anticipated after the Brexit vote, the US Federal Reserve postponed a further increase in interest rates and the Bank of England cut rates by 0.25%. In addition, the Bank of Japan announced changes to its monetary policy to further boost the Japanese economy. The European Central Bank was the only such institution that did not announce any further changes, but as at the time of writing there is talk about ending the negative interest rate strategy it is currently following. This buoyed the markets, and especially those in emerging countries. Over the past quarter Japan was the best-performing region within the fund, returning 8.8% (in US dollar terms). It was closely followed by Asia ex-Japan, which returned 8.2% (in US dollar terms). North America was the laggard, returning only 4.1%, while Europe managed to deliver positive growth of 5.5% (in US dollar terms). Emerging markets rebounded by 8.3% (in US dollar terms). Amongst the global sectors, IT (+12.7%) and materials (+9.2%) generated the highest quarterly returns. There were also good returns from financials (+6.3%) and consumer discretionary (+5.8%). The worst-performing sectors were utilities (-4.1%), telecommunications (-3.2%) and healthcare (-0.2%). On a look-through basis, the fund was positively impacted by overweight positions in IT and consumer discretionary, and an underweight position in utilities. Low exposure to financials had a negative impact. The fund’s strong performance over the quarter was primarily due to two managers – Contrarius and Egerton Capital. The Contrarius Global Equity Fund returned 15.2%, a significant outperformance driven by a number of the fund’s top holdings. Its exposure to resources via Teck Resources (+36.9%), Fortescue Metals Group (+45.0%) and Stillwater Mining Company (+12.6%) was a key contributor. Exposure to Twitter (+36.3%), JD.com (+22.9%) and Apple (+18.9%) also contributed. Marginal detractors were the fund’s exposures to gold mining companies.

Large-cap tech names such as Facebook (12.2%), Alphabet (+12.3%), Tencent (+21.0%) and Priceline (+17.9%) made a solid contribution to the outperformance of the Egerton Capital Equity Fund over the quarter. In addition, the fund benefited from exposure to Charter Communications (+18.1%), S&P Global (+18.3%), Visa (+11.7%) and the London Stock Exchange Group (+11.1%). The Cantillon Global Value Fund, Magellan Global Fund and Coronation Global Emerging Markets Fund all contributed marginally to overall alpha for the quarter. The Adelphi Europe Fund underperformed over the period. Exposures to Novo Nordisk (-22.3%), Pandora (-11.7%) and Scout24 (-10.1%) would have contributed to this. Outlook The final quarter of 2016 brings with it a number of key events that could provide some market volatility. These include the US presidential election, a constitutional reform referendum in Italy and a widely anticipated second interest rate rise by the US Federal Reserve. There will also be further clarity on the Brexit process, which so far has had a far smaller impact than originally feared. However, that may still change as the way forward emerges. Also of concern is the fact that Deutsche Bank is under severe pressure and is at risk of needing a bailout, something the German government has so far ruled out. Equity and bond markets are in the later stages of a multi-year bull market, and investors are rightfully cautious on the near-term future. However, if the US economy proves resilient – and we believe it may – then, combined with modest cyclical growth improvement in Europe and Japan and investment-led momentum in China, the global growth outlook may be more favourable than anticipated. Portfolio manager Tony Gibson as at 30 September 2016

CORONATION GLOBAL OPPORTUNITIES EQUITY FUND Important Information

Page 4/4


The Global Opportunities Equity Fund of Funds should be considered a long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past



in exchange rates may cause the value of underlying investments to go up or down. A fund of funds invests in collective investment schemes that levy their own fees and charges,

which could result in a higher fee structure for this fund. Coronation reserves the right to close the fund to new investors if we deem it necessary to limit further inflows in order for

it to be managed in accordance with its mandate. Unit trusts are allowed to engage in scrip lending and borrowing. Coronation Global Fund Managers (Ireland) Limited is authorised

in Ireland and regulated by the Central Bank of Ireland. The fund is approved under Section 65 of the Collective Investment Schemes Control Act by the Financial Services Board of

South Africa.


















The performance fee has been removed. Our expectation is therefore that the TER will decrease in future.












IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION GLOBAL OPPORTUNITIES EQUITY FUND OF FUNDS




FEE CHANGE




CORONATION GLOBAL EQUITY SELECT FUND


Page 1/4


Global Equity Select aims to give investors access to the best opportunities

in global equity markets. The fund is biased to developed markets and

actively seeks out attractively valued shares to maximise long-term growth.

Our intent is to outperform the global equity benchmark over all periods of

five years and longer.

The fund invests in the shares of companies listed on equity markets around

the world. The fund has a bias towards developed markets, typically holding

at least 70% in developed market shares and up to 30% invested in shares

listed in emerging markets. While our intent is to remain fully invested in

shares, the fund is allowed to hold up to 20% of its portfolio in cash and

bonds.

Global Equity Select will only invest in shares we view as being attractively

valued relative to other shares which may offer superior long-term

investment growth.

The fund’s share selection is the result of rigorous international research

conducted by Coronation’s investment team.

While we have a disciplined approach to reducing risk, shares can be volatile

investments and there is a meaningful risk of capital loss over the short term.

Global currency movements may intensify investment gains or declines.




five years or less.


are comfortable with full exposure to shares listed in global markets outside South Africa;


hold other investments and are looking to add exposure to global equity markets;


An annual fee of a minimum of 0.9% and a maximum of 2.5%, depending on

the fund’s performance, is payable.

If fund performance equals that of the benchmark (after fees and costs), a


benchmark, up to a total annual fee of 2.5%. Performance is measured over

a rolling 24-month period.

When the fund return is below the benchmark over a rolling 60-month

period the fee is discounted to 0.9%.


custody and audit charges. All performance information is disclosed after




Fund Fund Fund Fund Launch DateLaunch DateLaunch DateLaunch Date 30 January 2015





BenchmarkBenchmarkBenchmarkBenchmark MSCI All Country World Index


Bloomberg Bloomberg Bloomberg Bloomberg CORGEAU

ISINISINISINISIN IE00BV8WVD49

SEDOLSEDOLSEDOLSEDOL BV8WVD4









LOUIS STASSEN


NEIL PADOA

BEconSc (AcSci), FFA

CORONATION GLOBAL EQUITY SELECT FUNDCLASS A as at 31 October 2016

USDCurrency

Launch date 30 January 2015

Benchmark MSCI All Country World Index

Portfolio manager/s Louis Stassen and Neil Padoa


9.88NAV



PORTFOLIO DETAIL




31 Oct 2016Sector

Equities 97.5%

North America 76.3%

Europe 12.8%

Asia 4.8%

Latin American 2.7%

South Africa 1.0%

Real Estate 2.6%

Europe 2.6%

Cash (0.2)%

TOP 10 HOLDINGSRETURNS VS BENCHMARK


Google Inc 4.3%

KKR & Co. LP 4.1%

Apollo Global Management 4.0%

Amazon Com Inc 3.8%

Fortress Investment Group 3.6%

American Express Company 2.9%

Blackstone Group 2.8%

Schaeffler AG 2.8%

Walgreen Co 2.7%

Liberty Global CL A 2.7%


3.9% (5.1%)(1.2%)Since Launch (unannualised)

2.2% (2.9%)(0.7%)Since Launch (annualised)

2.0% 2.5% 4.5%Latest 1 year

4.8% 4.2% 9.0%Year to date


Fund Benchmark

13.2% 20.0%Annualised Deviation

0.16 (0.04)Sharpe Ratio

9.1% 13.9%Maximum Gain

(13.4%)(24.3%)Maximum Drawdown

47.6% 47.6%Positive Months

MONTHLY PERFORMANCE


(10.1)% 2.3% 10.0% 0.6% 0.7% (3.3)% 8.0% 1.5% 1.2% (0.7)%Fund 2016 9.0%

6.8% (2.3)% 3.1% (0.9)% (1.6)% (1.8)% (11.4)% (6.8)% 11.2% (0.9)% (3.2)%Fund 2015 (9.3)%



CORONATION GLOBAL EQUITY SELECT FUND Quarterly Portfolio Manager Commentary

Page 3/4



The third quarter, while traditionally quiet with investors in the Northern Hemisphere going on their summer vacation, proved to be even less eventful than in previous years. While the Brexit vote jolted markets towards the end of June 2016, the next three months were spent speculating on the nature of the UK’s exit from the European Union, as well as ongoing changes in interest rate expectations in the US. The latest thinking around Brexit is that the UK will try to negotiate a fair, if slightly sympathetic deal, while European politicians are increasingly calling for conditions more aligned with a ‘hard’ exit. This has led to the pound continuing to weaken over the last few weeks, resulting in new 30-year lows as we speak. With regards to interest rate expectations in the US, the latest forward curve indicates a slight probability of a rate increase in November, and an almost certain rate hike in December. We concur with these views. Equity markets performed well over the period, although it must be borne in mind that they were coming off relative lows after the Brexit vote. The MSCI All Country World Index (ACWI) returned 5.3% over the quarter, with the emerging markets index returning 9.2%. Year-to-date, the ACWI has returned 7.1%, significantly below the emerging markets return of 16.4%. Close to half of this performance has been due to emerging market currencies strengthening against the US dollar, after sustained weakness over the previous few years. However, over longer time periods, developed markets have consistently outperformed the emerging universe. Sectors that stood out over the quarter were information technology and materials, while interest rate sensitive sectors like utilities and telecommunications underperformed. Consumer staples had a weak quarter, given generally greater risk appetite. Since the beginning of the year, energy and materials have done most of the running, with healthcare and financials being the laggards. The same pattern was evident in emerging market returns. The fund performed well over the quarter, outperforming its benchmark after all fees by 5.54%. Year-to-date returns are now 3.15% ahead of benchmark, and we have succeeded in erasing most of the alpha deficit suffered during the fund’s first 12 months. We continue to work hard to move into positive relative territory since inception. In our analysis, it is clear that our high exposure to emerging markets and their currencies shortly after launch cost the fund dearly, with developed market stock picks comfortably outperforming the benchmark since inception. Over the last quarter our holdings in alternative asset managers finally contributed positively, with some other long-term holdings like JD.com and Qualcomm also fulfilling some of their anticipated potential. Our other IT stocks like Amazon, Alphabet and Priceline also performed well. Measured since the beginning of the year the biggest contributors have been Estácio and Kroton, our holdings in the Brazilian educational sector, which announced a merger after an agreed takeover by Kroton (covered in an earlier commentary). Other winners included Apollo Global Management, Tata Motors, NetEase, Amazon and Urban Outfitters. The biggest detractors were TripAdvisor (after disappointing results), Pershing Square (due to ongoing disappointment around the Valeant Pharmaceuticals holding), JD.com (resulting from continued competitive activity in the e-commerce space in China) and LPL Financial. Apart from LPL Financial, where we sold because we lost faith in management’s ability to tackle their cost base in light of disappointing revenues, we continue to believe in these holdings. In most cases, we have used share price weaknesses to increase our holdings.

A relatively new stock in the portfolio, Tempur Sealy International, provided a lot of price action since its inclusion less than a year ago. The company is one of the two leading mattress manufacturers in the US – and for that matter, the world. It owns strong brands covering the whole spectrum of price points, but is particularly strongly positioned at the top end of the range with the Tempur brand. What attracted us to the stock was that an activist investor took control of the Board through a hostile proxy vote, and immediately replaced the incumbent top management. The new CEO, Scott Thompson, has an impressive track record. He had particular success at Dollar-Thrifty, where he managed to increase operating margins significantly before the business was sold to one of its larger competitors. The reason why we think his appointment is appropriate, is because we believe that there is a big margin uplift opportunity at Tempur Sealy. When Tempur bought Sealy, its biggest listed competitor, in 2012, poor execution led to a series of manufacturing hiccups at Sealy. This has resulted in current operating margins at Sealy being just over half of what they were at the time of the deal. We are confident that this situation can be rectified through better operational management. Scott has bought equity in the business using his own balance sheet, and has displayed sound balance sheet management. The company’s more recent set of results (after June 2016) looked promising. The share price reacted positively by jumping over 20% in a few days. Unfortunately, just before this quarter-end, the company guided profit growth down again due to a very slow September. As a result of typical short-term investor orientation, the company’s share price dropped by 25% in two days. We managed our position size down after the initial positive price reaction, and could thus take advantage of the price decline. While we acknowledge that pure online players pose a threat to traditional incumbents, we think that the strength of Tempur Sealy’s brands and its innovation will endure. In our view, the company is offering a promising investment opportunity and it currently makes up about 2% of the fund. The fund’s current positioning remains weighted towards consumer goods, with exposure to the consumer discretionary sector comprising the bulk of these holdings (and consumer staples forming a smaller component). While holding very few banking shares, the fund also has significant exposure to financials in the form of its holdings in alternative asset managers. In addition, it maintains a meaningful exposure to the information technology sector. Portfolio managers Louis Stassen and Neil Padoa as at 30 September 2016



CORONATION GLOBAL EQUITY SELECT FUND Important Information

Page 4/4


The Global Equity Select Fund should be considered a long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is

not necessarily an indication of future performance. The fund is mandated to invest up to 100% of its portfolio into foreign securities and may as a result be exposed to

macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in

exchange rates may cause the value of underlying investments to go up or down. Coronation reserves the right to close the fund to new investors if we deem it necessary to limit





















The performance fee cap has been reduced by 0.40% and the performance measurement period changed. Our expectation is therefore that, while the outcome on the TER in any

given period is uncertain, the average TER over the course of a market cycle will be lower.












IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION GLOBAL EQUITY SELECT FUND




FEE CHANGE




CORONATION GLOBAL EMERGING

MARKETS FUND


Page 1/4


The Global Emerging Markets fund aims to give investors access to the best

opportunities in emerging equity markets. The fund actively seeks out

undervalued shares to maximise long-term growth. Our intent is to

outperform the emerging equity benchmark over all periods of five years

and longer.

The fund invests in the shares of companies which are either based in

emerging countries, or earn a significant part of their revenue from

emerging economies. It will be fully invested in shares at all times. The fund

is mandated to use derivative instruments for efficient portfolio


Global Emerging Markets will only invest in shares we view as being

attractively valued and which may offer superior long-term investment

growth.

The fund’s share selection is the result of rigorous international research

conducted by Coronation’s investment team.

While we have a disciplined approach to reducing risk, shares can be volatile

investments and there is a meaningful risk of capital loss over the short term.

Emerging markets are generally viewed as more risky than developed

markets. Global currency movements may intensify investment gains or

declines.




five years or less.


are comfortable with full exposure to shares in emerging markets;


hold other investments and are looking for exposure to emerging markets;


An annual fee of a minimum of 1.10% and a maximum of 2.50%, depending

on the fund’s performance, is payable.

If fund performance equals that of the benchmark (after fees and costs), a


benchmark, up to a total annual fee of 2.50%. Performance is measured over

a rolling 24-month period.

If the fund underperforms the benchmark over any 60-month period, the fee

is reduced to 1.10%.


custody and audit charges. All performance information is disclosed after




Fund Fund Fund Fund Launch DateLaunch DateLaunch DateLaunch Date 14 July 2008

ClassClassClassClass B


Class Launch DateClass Launch DateClass Launch DateClass Launch Date 5 May 2011


Morningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund CategoryMorningstar Fund Category Global Emerging Markets – Equity


BenchmarkBenchmarkBenchmarkBenchmark MSCI Emerging Markets Index


Bloomberg Bloomberg Bloomberg Bloomberg CORGEMB

ISINISINISINISIN IE00B553TV27

SEDOL SEDOL SEDOL SEDOL B553TV2



IMPORTANT PORTFOLIO CHAIMPORTANT PORTFOLIO CHAIMPORTANT PORTFOLIO CHAIMPORTANT PORTFOLIO CHARACTERISTICS AND RISKSRACTERISTICS AND RISKSRACTERISTICS AND RISKSRACTERISTICS AND RISKS






GAVIN JOUBERT

BBusSc, CA (SA), CFA

SUHAIL SULEMAN

BBusSc, CFA

CORONATION GLOBAL EMERGING MARKETS FUNDCLASS B as at 31 October 2016

USDCurrency


Benchmark MSCI Emerging Markets Index

Portfolio manager/s Gavin Joubert and Suhail Suleman


9.92NAV




GROWTH OF A US$100,000 INVESTMENT EFFECTIVE GEOGRAPHIC EXPOSURE

Country 31 Oct 2016

99.13%Equities

China 19.57%

Brazil 16.77%

South Africa 16.30%

India 11.19%

United States 9.36%

Russian Federation 7.40%

Netherlands 5.22%

Indonesia 1.71%

Belgium 1.63%

Chile 1.52%

Other 8.46%

0.87%Cash

USD 0.60%

ZAR 0.14%

Other 0.13%

PERFORMANCE FOR VARIOUS PERIODS TOP 10 HOLDINGS





(1.82)% (2.75)%(4.56)%Latest 3 years (annualised)

9.27% 6.69% 15.96%Latest 1 year

16.30% 3.91% 20.20%Year to date

As at 31 Oct 2016 % of Fund

7.06%Naspers Ltd (South Africa)

5.10%Baidu Inc (China)

4.86%JD.com Inc-Adr (China)

4.83%Kroton Educacional SA (Brazil)

3.58%Magnit Ojsc-Spon (Russian Federation)

3.35%Heineken NV (Netherlands)

3.10%Brilliance China Auto (China)

3.08%Yum Brands Inc (United States)

2.79%Tata Motors Ltd (India)

2.77%Estacio Participacoes Sa (Brazil)

RISK STATISTICS SINCE LAUNCH SECTORAL EXPOSURE

As at 31 Oct 2016 Fund

Consumer Discretionary 47.20%

Consumer Staples 19.10%

Information Technology 15.43%

Financials 15.03%

Health Care 2.36%

Cash 0.87%

BenchmarkFund






Fund Date Range

Highest annual return Mar 2009 - Feb 2010 106.2%




(8.9)% (0.8)% 17.3% 1.8% (1.8)% 4.5% 5.4% 1.4% 1.8% (0.2)%Fund 2016 20.2%

(2.2)% 3.8% (3.5)% 7.0% (5.9)% (1.9)% (8.5)% (11.4)% (7.7)% 12.3% 0.5% (4.1)%Fund 2015 (21.6)%

(9.6)% 6.0% 2.2% (1.5)% 6.6% 3.5% (1.8)% 3.6% (9.7)% 4.1% (0.6)% (9.4)%Fund 2014 (8.3)%



CORONATION GLOBAL EMERGING MARKETS FUND Quarterly Portfolio Manager Commentary

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The Coronation Global Emerging Markets Fund returned 8.8% during the third quarter of 2016, which was in line with the index’s return. Year-to-date the fund has now appreciated by 20.5%, which is 4.5% ahead of the index’s return of 16.0%, and over the past one-year period the fund has returned 30.48%, which is 13.7% ahead of the 16.8% return from the index. Over the past year, five of the top 10 contributors were Brazilian stocks, collectively contributing 9.2% of the fund’s 13.7% outperformance. All five (Kroton, Estácio, Itaúsa, Hering and BB Seguridade) are up by over 50% in USD over the past year, with the education company Kroton being the standout, having appreciated by 143% in USD and contributing 4.8% to outperformance. Other notable contributors over the past year have been the owner of Jaguar Land Rover, Tata Motors (+78%; 2.2% contribution), the Indian private bank Yes Bank (+70%; 1.8% contribution) and the Russian food retailer X5 Retail (+66%; 1.2% contribution). Not owning Tencent and Samsung Electronics detracted by around 1.4% each, although a positive contribution from Naspers (whose biggest asset is its stake in Tencent) partly offset the negative Tencent attribution. The only other negative detractor of more than 1% was the Indian IT services company Cognizant (-24%; 1.1% negative contribution). We would make the point, as we always do, that a one or two-year period is a short time period, and not too much should be read into performance over these timeframes in our view. In this regard, while the fund has now outperformed the market by 14% over the past one year, this time last year the fund was in fact 12% behind the market. Given our long-term focus and the fact that we therefore often own stocks that are disliked by the market because of a poor short-term outlook (Brazilian stocks being the most recent case in point), it is often necessary to go through periods of short-term underperformance in order to achieve the fund’s objective of significant long-term outperformance of the market. In our view, only periods of five years or longer are meaningful, and ideally, if possible, performance should be assessed on this basis. In this regard, since the fund launched just over eight years ago, it has outperformed the index by 3.1% per annum. Over the past five years it has outperformed the index by 2.0% per annum. There were a few notable developments on the political front during the quarter, however none had a material impact on the fund’s performance. The final impeachment and removal of former president Dilma Rousseff in Brazil was highly anticipated and therefore did not really have an impact when it happened, as the big upward moves in Brazilian equities and currency had already happened in the first half of the year. We did continue to reduce the fund’s Brazilian exposure by slowly reducing a few of the bigger positions, with the result that the total Brazilian exposure is now 16.6% of fund compared to 20.3% at the end of June. The fund’s biggest Brazilian exposure is still in the education companies. In this regard Kroton and Estácio’s shareholders approved the proposed merger at an increased offer price to that initially proposed by Kroton, and the deal is now awaiting regulatory approval by the country’s anti-trust authorities. We remain very positive on the long-term prospects for the Brazilian education industry, and in particular the prospects of a combined Kroton/Estácio (which are respectively the number one and two tertiary private education companies in Brazil). We think both assets are actually still very attractive on a standalone basis, and even more attractive as a combined entity due to the scale, nationwide footprint, synergies and the fact that the best management team in the industry will be running the combined entity. As such, 7.8% of the fund is still invested in Brazilian education, made up of 4.6% in Kroton and 3.2% in Estácio. The attempted coup in Turkey in early July and its aftermath has severely dented investor confidence in that country. The fund held only two Turkish stocks prior to the coup attempt – small positions in Garanti Bank and in BIM, a hard discount food retailer. We sold out of the position in Garanti Bank – as a bank it was simply too exposed to a big downturn in the Turkish economy and therefore the risk/reward trade-off did not, in our view, warrant retaining the position, despite what appeared to be reasonable upside in the share. In contrast, we believe BIM is one of the best food retail operators in emerging markets and should not be materially impacted by post-coup developments, so we have marginally increased the fund’s exposure to BIM as it has declined (along with the Turkish lira). It still remains a sub-1% position and we would require more upside before increasing the position size materially further. In terms of portfolio activity over the quarter, on the sales side a notable reduction in position size was that of the Indian banks. In our view, India remains one of the most attractive emerging markets on a ten-year view. Its banks offer a significantly cheaper way to get access to the Indian consumer – through very low financial services penetration that is gradually increasing, as well as through market share gains from the State banks – than the country’s more obvious names in the household and personal care space, which trade on eye-watering multiples. We had been adding to the positions in the two banks that the fund owned (Axis Bank and Yes Bank) from the fourth quarter of 2015 as their share prices declined (along with the broader market) as investors lost faith in the pace of regulatory reform in India under the Modi government. We also bought a third (HDFC, a mortgage provider that also has a stake in HDFC Bank, as well as insurance and asset management interests) for the first time in early March. From their bottom at the end of February, all three banks are up sharply – Axis Bank, the largest position, is up close to 50%; Yes Bank, the second largest position, has almost doubled; and HDFC, the smallest position, is up 35% (all returns in US dollars). Naturally we have trimmed position sizes in response to such large moves in share prices. Although all three are still reasonably attractive, their reduced upside warrants a smaller exposure. At the end of June the combined holding in the three amounted to 8.3% and by 30 September their collective exposure was down to 4.8% of fund. This in turn meant the fund’s Indian exposure decreased from 16.4% to 12.2% over the quarter.

During the quarter there were also a few new buys. The largest of these was LiLAC (Liberty Latin America and Caribbean), which is now a 1.5% position. LiLAC was initially created as a tracking stock by Liberty Global to spin out its Latin American broadband, mobile and pay-TV assets. During the spin-out process, LiLAC bought Cable & Wireless Communications (mobile telecoms in the Caribbean and Central America), which itself had just purchased Columbus (broadband and pay-TV in the same region). The single biggest market for LiLAC is Chile (25% of total operating profit), followed by Panama (19%) and Puerto Rico (12%), with various Caribbean islands making up the bulk of the rest. The share price is down by a third since late May after poor results and from an overhang of shares, with the latter having had the bigger impact in our view. Many of the shareholders of Liberty Global (who were the recipients of LiLAC shares due to the unbundling) may have little interest in holding onto their LiLAC shares given how small the business is/was in the context of the overall Liberty Global business (5%). Aside from revenue opportunities from rolling out services in countries where there is low penetration and also from market share gains, there are big cost saving opportunities due to the newfound scale of the business, as well as the ability to realise synergies. For these reasons we believe margins have scope to increase from current levels. In addition, capital expenditure is currently high and will reduce to a more normal level over the next few years. As a result of these factors, we believe the company will generate significant free cash flow looking a few years out, and LiLAC trades on only a high single-digit multiple of this free cash flow. In addition, we have high regard for the capital allocation skills (running an efficient balance sheet, undertaking significant share buy-backs, etc.) of John Malone (the Chairman and controlling shareholder of both Liberty Global and LiLAC) and his senior managers, and we believe that over time these same capital allocation skills will be applied to LiLAC to the benefit of shareholders. Over the past few years we have spent a lot of time researching and understanding online classified businesses due to the fact that these businesses make up a large part of the valuation of the fund’s largest holding, Naspers. We like dominant online classifieds businesses – the largest player in each vertical benefits from the virtuous circle of most sellers/service providers and most buyers/users being attracted to the biggest site, and as such it is very hard to disrupt once established as the network effect creates a high barrier to entry. They are also inherently very cash generative (converting over 100% of earnings into free cash flow) and generate very high returns on capital. In this regard, the fund’s second largest buy during the quarter was a 1.2% position in 58.com, the leading classifieds website operator in China. The company is very strong in a number of key classified verticals, with dominant positions in Jobs (70% market share of the blue-collar job market), Yellow Pages/online classifieds (85% market share) and property (in which they have three of the leading property sites). The company is investing significantly in these three verticals as well as others, in order to achieve dominance and the economic benefits that come with this. It is also investing heavily in its home services arm, which will allow plumbers, electricians and other service providers to offer their services online and be booked directly by the customer. Customers will be able to rate the quality of the service provider, creating a feedback mechanism and loop that will entrench customer loyalty and trust for good service providers, much like (as an example) the review system works for hotels on TripAdvisor. This investment in the business means that current profitability is low (single-digit EBIT margins) and is well below normal in our view. The leading (those with > 50% market share) online classifieds businesses in the world (both in emerging markets and developed markets) are extremely profitable and typically generate EBIT margins in the 40% to 60% range (Avito in Russia, for example, generates 45% EBIT margins). In this context one must bear in mind that 58.com already has dominant positions in a number of verticals, and in fact currently generates gross margins of 90%. We would not expect 58.com to generate EBIT margins of 40% to 60% (its business model requires higher cost because of a large direct sales force), but we do believe that normal EBIT margins will ultimately be much higher than the current single-digit level. The online classified industry in China is still in its infancy and 58.com has many leading positions in this market. In our view, it is well placed to retain these leading positions. As a result, we believe that its revenue, profits and free cash flow will grow at a high rate over the next five years and beyond. We also like the fact that Tencent own over 20% of the business. Tencent is dominant in social media in China and captures a very high percentage of all online traffic; it also has management that we have high regard for. In addition, we like the fact that the founder and CEO of 58.com still retains a big stake (11%) in the company, resulting in an alignment with minority shareholders. While the weighted average upside to the portfolio has come down (now just below 50%), this is still very attractive upside. At the same time a useful positive backdrop is provided by the fact that political environments appear to be getting slightly better in many emerging markets (Brazil, South Africa and India stand out in this regard) and arguably worse in a number of the main developed markets as populism takes hold (US, UK and Europe would fall into this category). This arguably increases the relative attractiveness of emerging markets. We are continuing to find a number of potentially interesting ideas – either stocks that we cover already but that are becoming more attractive due to share price declines or as a result of additional work we are doing on them, or stocks we are doing the detailed work on for the first time. Over the past quarter we went on research trips to South Korea and China and also met with management from a number of portfolio holdings and other companies in London and New York. During October we will be going to Asia and will be returning to Brazil in January, followed by India in February. Portfolio managers Gavin Joubert and Suhail Suleman as at 30 September 2016

CORONATION GLOBAL EMERGING

MARKETS FUND Important Information

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The Global Emerging Markets Fund should be considered a long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance

is not necessarily an indication of future performance. The fund is mandated to invest up to 100% of its portfolio into foreign securities and may as a result be exposed to

macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in

exchange rates may cause the value of underlying investments to go up or down. Coronation reserves the right to close the fund to new investors if we deem it necessary to limit










Performance is calculated by Coronation as at the last day of the month for a lump sum investment using Class B NAV prices. Class A NAV prices were used for the period prior to

the launch of Class B. All underlying price and distribution data are sourced from Morningstar. Performance figures are quoted after the deduction of all costs (including manager

fees and trading costs) incurred within the fund. Note that individual investor performance may differ as a result of the actual investment date, the date of reinvestment of distributions

and dividend withholding tax, where applicable. Annualised performance figures represent the geometric average return earned by the fund over the given time period.

Unannualised performance represents the total return earned by the fund over the given time period, expressed as a percentage.







The base fee of the fund has been reduced by 0.10%, the performance fee cap was reduced by 0.40% and the performance measurement period changed. Our expectation is that

the average TER over the course of a market cycle will be lower.












IMPORTANT INFORMATION THAT SHOULD BE CONSIDERED BEFORE INVESTING IN THE CORONATION GLOBAL EMERGING MARKETS FUND




FEE CHANGE




CORONATION STRATEGIC INCOME FUND€¦ · Fund ClassFund Class A BenchmarkBenchmark 110% of STeFI...

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