CORONATION AFRICA FRONTIERS STRATEGY

Investment objective

The Coronation Africa Frontiers Strategy aims to maximise the long-term risk-adjusted returns available from investments on the continent through capital growth of the underlying stocks selected. It is a flexible portfolio primarily invested in listed African equities or stocks listed on developed and emerging market exchanges where a substantial part of their earnings are derived from the African continent. The strategy may hold cash and interest-bearing assets where appropriate.

Investment approach
Coronation is a long-term, valuation-driven investment house, focused on bottom-up stock picking. Our aim is to identify mispriced assets trading at discounts to their long-term business value (fair value) through extensive proprietary research. In calculating fair values, through our fundamental research, we focus on through-the-cycle normalised earnings and/or free cash flows using a long-term time horizon. The portfolio is constructed on a clean-slate basis based on the relative risk-adjusted upside to fair value of each underlying security. The portfolio is constructed with no reference to a benchmark. We do not equate risk with tracking error, or divergence from a benchmark, but rather with a permanent loss of capital.

Investment team

We operate as an integrated global team headquartered in Cape Town, South Africa, comprising 54 investment professionals. The strategy is managed by Peter Leger (Head of Global Frontier Markets) and Greg Longe (Analyst & Portfolio Manager) who have combined investment experience of 38 years.