Transformation and the creation of sustainable broad-based black economic empowerment is an integral part of Coronation's business strategy. The chairman of the board, Shams Pather, also chairs the transformation committee which drives all related processes that, over time, will enable Coronation to exceed the imperatives as defined in the Department of Trade and Industry's Codes of Good Practice on Black Economic Empowerment (BEE) and the Financial Sector Charter. Transformation is a business imperative which makes practical business sense, the benefits of which extend to clients, partners, shareholders, staff and the economy.

Our strategy is defined by the following key areas:

• Ownership and control
• Employment equity and human resource development
• Procurement and enterprise development
• Corporate social investment

Ownership and control
One of the most direct means of increasing meaningful black participation in the economy is through black participation in the decision making and ownership of the company. Our chosen BEE partner, the Imvula Trust (Imvula), includes all current and future black staff. Imvula continues to create tangible benefits for its participants through annual cash distributions and the creation of net asset value.

Black representation at board level is 67%, and 60% at executive management level.

Employment equity and human resource development
People are our greatest asset and the smarter and more diverse we are as a business, the greater is our competitive advantage.

Over the years we have focused considerable time and resources at ensuring that we attract, motivate and retain the very best people. We continue to employ talented black individuals and enrich our already diverse staff complement. Where we encounter a shortage of relevant industry experience among black individuals, we recruit on the basis of an individual's potential to excel.

We believe that the effective development and transfer of skills is essential to the transformation of the industry. As such, training, mentoring and career planning play integral roles in the advancement of all staff. The Coronation Mentorship Programme enables experienced staff to mentor new employees, providing guidance on company culture and work processes as well as industry insight.

Our core values of individual dignity, achievement and continuous learning are not only essential to our culture but, as part of a highly successful team of people, deeply ingrained in each individual. Staff are encouraged to enhance their knowledge and skills through part-time study and by attending conferences and workshops. In many instances the business provides financial assistance towards tuition fees. We continue to direct a large portion of the company's training spend to black staff. Furthermore, staff are encouraged to diversify their skills by exploring new positions and responsibilities within the business.

The notable success of our disciplined recruitment and selection process is reflected in our staff demographics spanning all levels of the business. As at 30 September 2009, 54% of our South African staff are black. Within the South African investment team of 47 individuals 32% are black, of which 6% are black females.

Procurement and enterprise development
Preferential procurement is where we believe transformation has the greatest impact as it provides real opportunity for the redistribution of wealth. By adhering to a procurement policy that strongly reflects BEE as the central criterion, we are able to influence our suppliers to enhance their BEE credentials, and therein help create a cycle of enhanced economic activity and wealth creation.

As a custodian of our clients' assets, the procurement of stockbroking services is a critical element of our business. Through the Coronation Business Support Programme initiated in February 2006, six niche black stockbrokers were allocated a minimum of 10% of total annual brokerage over periods of three to five years. Throughout the course of each financial year we maintain ongoing interaction with members of the stockbroking teams and provide assistance at both an operational and strategic level. The first 'three-year review' was conducted during the first half of the year, providing the opportunity for other interested parties to apply for inclusion. The level of interest was incredible and as such the programme has been extended to include a total of seven. The Coronation Business Support Programme has received much acclaim within the industry, contributing markedly in transforming and strengthening the local stockbroking community.

The empowerment credentials of all suppliers and service providers are reviewed by independent parties.

Conclusion
We embrace broad-based black economic empowerment and what this means for our staff and our business. To us, transformation can only be meaningful if it is people-centred, builds capacity and is treated as a long-term commitment. This is the sentiment that guides all our initiatives and transformation goals.

Sustainable broad-based black economic empowerment and transformation is an imperative for our business and South Africa.

For more detailed information about transformation within Coronation please click here to contact us.