analysis
Aggressive allocation funds: the basics and the mavericks
High-equity funds are now the largest sector in the unit trust sphere, accounting for about a quarter of industry assets
High-equity funds are now the largest sector in the unit trust sphere, accounting for about a quarter of industry assets. They provide a one-stop shop for building retirement savings. Most consultants and financial advisers recommend equities to be the core of a portfolio if it is going to have any chance of beating inflation over the long term. Regulation 28 of the Pension Funds Act is one of the saner SA regulations, as it prescribes a maximum exposure of 75% to equities as well as a 5% or 10% limit on each share, and has gradually built up permitted foreign exposure to 30%. Three funds have a large market share in the sector, and all have already been covered well in IM — Allan Gray Balanced, which has close to R150bn under management, Coronation Balanced Plus and Investec Opportunity. Instead of the mainstream Coronation Balanced Plus, we look at Coronation Market Plus. This isn’t technically a Regulation 28 fund, but it looks like one most of the time. Coronation believes this ...
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