Press Releases

Coronation’s results reflect the strong headwinds in South Africa and tough operating conditions globally

Coronation’s annual results reflect a tough year on the markets; Company is positive on current portfolio positions

Coronation delivers resilient half-year results against a challenging backdrop

Strong outperformance and leading with purpose results in an exceptional year for Coronation

Abundance of opportunities boosts performance, revenue; stewardship firmly in the mainstream

Cape Town, 25 May 2021 – Long-term valuation-driven asset manager Coronation Fund Managers today announced its interim results for the six months to end-March 2021.

Performance and financial results positive; corporate citizenship is key

Investment flows in line with the market; Coronation positive on future returns

Coronation optimistic about investment return outlook

Cape Town, 19 November 2019

Coronation more positive on prospects for second half of financial year

Cape Town, 21 May 2019 – Long-term valuation-driven asset manager Coronation Fund Managers today announced its interim results for the six months to end March 2019.

Conditions challenging but Coronation’s long-term investment returns remain strong

Assets under management of R587 million Diluted headline earnings per share of 420.7 cents Final dividend per share of 420.0 cents Cape Town, 20 November 2018 - Valuation-driven, long-term asset manager Coronation Fund Managers today announced its annual results for the year ended 30 September 2018.

Coronation sees robust revenue growth in tough market environment

Assets under management (AUM) of R588 billion Diluted headline earnings per share of 223.4 cents Interim dividend per share of 223.0 cents Cape Town, 22 May 2018 – Leading independent long-term asset manager Coronation today announced interim results for the six months to 31 March 2018. Anton Pillay, Coronation CEO, commented: “Our results are in line with management expectations. Amidst tough market conditions, we delivered robust revenue growth of 7.4% to R2.1 billion. Our variable cost model continued to contribute to the effective management of total costs and, once again, we declared an interim dividend that reflects 100% of diluted headline earnings per share.”

Coronation delivers credible results for the year

Assets under management (AuM) of R614 billion Diluted headline earnings per share 437.5 cents Total dividend per share of 437.0 cents Cape Town, 21 November 2017 – Leading independent long-term asset manager Coronation Fund Managers (Coronation) today announced annual results for the 12 months to 30 September 2017. Anton Pillay, Coronation CEO, commented: “We delivered...

Coronation delivers solid set of results

Assets under management of R576 billionDiluted headline earnings per share 220.7 centsInterim dividend per share of 220.0 centsJohannesburg, 23 May 2017 – Leading independent long-term asset manager Coronation Fund Managers (Coronation) today announced interim results for the six months to 31 March 2017.As a cyclical business, Coronation’s revenue stream is highly geared to both the returns of

Coronation re-opens strategies to new institutional investors

Coronation Fund Managers today announced the re-opening of its institutional strategies to new clients. The strategies have been closed for the past five years.“Our South African specialist Equity, Balanced and Absolute Return products were closed in 2012 as a pre-emptive step to protect our ability to deliver on long-term performance objectives for our existing clients. It was an important move

To prosper in a lower return world, stay the course

With the local equity market having delivered below-average returns over the last three years, investors may be tempted to capitulate and make significant changes to their investment portfolios. ; The temptation may be to switch managers, shorten your time horizon, change your investment strategy, or to cut your equity exposure; arguably precisely the wrong decisions to make in challenging...

Five Coronation funds recognised at 21st annual Raging Bull Awards

Independent long-term fund manager, Coronation, was recognised in five fund categories as a top performer at the annual Raging Bulls Awards ceremony held in Johannesburg last week. Coronation Industrial ;(Best South African Industrial Fund) and Coronation Bond (Best South African Interest-Bearing Variable Term Fund) each took the top spot for straight performance over the three years to end

Coronation focused on creating long-term value

Financial highlights:- Revenue of R4.0 billion (-9%)- Diluted headline earnings per share of 447.6 cents (-13.3%)- Total dividend per share of 447 cents- Assets under management of R599 billion (-1.8%)Anton Pillay, Chief Executive Officer of Coronation Fund Managers, commented:“The past year’s results are in line with management’s expectations. Amid heightened levels of volatility, our client...

Coronation posts another credible set of results

- Assets under management of R606 billion - Diluted headline earnings per share of 229.7 cents - Interim dividend per share of 229.0 cents ; Leading independent long-term manager Coronation Fund Managers (Coronation) today announced interim results for the six months to 31 March 2016. ​ Coronation is a cyclical business with a revenue stream that is highly geared to both the...

Coronation recognised at 20th annual Raging Bull Awards

Long-term fund manager, Coronation, was named runner-up South African Management Company of the year at the Raging Bull awards ceremony held in Cape Town this week. The award is calculated using the overall risk-adjusted performance of its unit trust funds with a track record of at least five years to end-December 2015 in those sectors that comprise at least five funds. For the second...

Coronation delivers credible results in a challenging market environment

- Assets under management of R610 billion, up 3.7% - Diluted headline earnings per share of 516.0 cents, down 9.7% - Total dividend per share of 516 cents Leading independent long-term manager Coronation Fund Managers (Coronation) today announced annual results for the 12 months to 30 September 2015. Market volatility intensified throughout the financial year, reflecting the deterioration...

Post-retirement investing in a challenging market

Coronation Fund Managers has cautioned investors seeking both immediate income and long-term capital growth, specifically those in retirement, to pay special heed as the investment environment grows cloudier.According to Pieter Koekemoer, head of personal investments at Coronation, it's critical that retirees have a well-constructed portfolio with enough exposure to risk assets to achieve...

Financial Mail 2015 Top Companies Report

Many of the names from last year’s Top 20 ranking are still here in 2015. The placing, though, is different, with one exception: Coronation Fund Managers. Coronation has achieved what most observers would have thought was impossible to do: three consecutive number one rankings in the Top 20. Of course, the strong run in global equity markets played its part here, with the bull market that began...

Long-term focus critical when investing amid increased risk

Many of the names from last year’s Top 20 ranking are still here in 2015. The placing, though, is different, with one exception: Coronation Fund Managers. Coronation has achieved what most observers would have thought was impossible to do: three consecutive number one rankings in the Top 20. Of course, the strong run in global equity markets played its part here, with the bull market that began...

Coronation named Equities and Global Manager of the Year

Coronation Fund Managers was voted both Equities Manager of the Year and Global Manager of the Year at the annual Imbasa Yegolide Awards for Professional Excellence, hosted by the Council of Retirement Funds for South Africa (Batseta). The title of Equities Manager of the Year is a fifth consecutive win. ;According to Batseta, the awards provide trustees and principal officers an opportunity...

Coronation remains singularly focused on creating long-term value

- Assets under management of R636 billion- Diluted headline earnings per share of 246.7 cents- Interim dividend per share of 246 centsLeading independent long-term manager Coronation Fund Managers (Coronation) today announced interim results for the six months to 31 March 2015. ;Over the period, developed markets once again outperformed emerging markets (3.6% for the MSCI World Index versus...

Coronation secures ‘Best Large Fund House’ for the fifth consecutive year

Coronation Fund Managers received the much sought-after title of Morningstar Best Fund House: Larger Fund Range at the 2015 Morningstar South Africa Fund Awards ceremony held in Cape Town last night. Its top-performing Strategic Income and Industrial funds also took top honours in their respective categories, namely Best Bond Short-term Fund and Best Sector Equity Fund...

Coronation remains SA’s top Management Company

Coronation Fund Managers was named South African Management Company of the Year for a third consecutive year at the Raging Bull awards ceremony held in Johannesburg last night. The award recognises the SA-domiciled unit trust company with the most consistent overall risk-adjusted performance* across a range of five or more rand-denominated unit trust funds (each with a minimum performance history...

Financial Times, beyondbrics: Nigerian banks suffer in oil storm

So you thought a six-month break on a desert island looked appealing and spent long hours in silent meditation, reflecting on self-actualisation, harmony and humanity’s ceaseless race to consume the planet. Now you’ve just made the return...

Coronation is Emerging Market Equity Manager of the Year

Coronation Fund Managers was named Emerging Market Equity Manager of the Year at the inaugural Professional Pensions InvestmentAwards 2014 held in London on 28 November. Celebrating excellence among the asset managers who serve UK occupational pension schemes, the awards shortlist was drawn up in association with Aon Hewitt, a leading global investment consultancy. Shortlisted managers were...

Coronation delivers a good set of results

Assets under management at 30 September of R588 billion, up 20% Diluted headline earnings per share of 571.6 cents, up 37% ​ Total dividend per share of 571 cents​ Leading independent long-term investment house Coronation Fund Managers (Coronation) today announced a good set of results for the 12 months to 30 September 2014. Revenue increased by 31% to R4.8 billion for the financial year from the...

Tough choices

We have long argued that a view that the rand would remain strong as long as US (and other developed country) interest rates remained low was too simplistic, viewing this as an unsustainable situation. The thinking behind this conclusion relates to the reasons behind the view of low rates. Rates are not low because this is a ‘Goldilocks’ world of low inflation and solid growth; they are low...

Brazil fashion retail

In previous articles we have consistently spoken about our belief in the long-term fundamentals of Brazil as a future leading economy. We have also drawn parallels between Brazil and South Africa as two countries with similar histories of colonialism, inequality and substantial resources potential. In this article we explore the development of the fashion retail industry worldwide, compare this...

Coronation still head of the pack

Coronation Fund Managers maintained its lead among companies that manage unit trusts that invest in South African markets, as well as rand-denominated funds that invest in foreign markets, the latest survey by PlexCrown Fund Ratings shows. For the quarter to the end of June, Allan Gray was in second place, and Nedgroup Investments was ranked third. The survey rates collective investment...

Top Companies 2014

Coronation Fund Managers is the Financial Mail's Top Company for the second year in succession. This is quite a feat - in the history of Top Companies, there has never been a back-to-back winner...

Another strong set of results for Coronation

Assets under management of R547 billion. Diluted headline earnings per share of 275.4 cents. Interim dividend per share of 275 cents.​ JSE-listed asset manager Coronation Fund Managers (Coronation) today reported another strong set of results for the six months to 31 March 2014, benefiting from the continued strength in equity markets and strong inflows. The business stated that continued good...

International Outlook

Not surprisingly, given the outsized returns experienced in 2013, the first quarter of 2014 was a lot more volatile than at any time over the past year or two. In the end, however, equity markets were essentially directionless over the full quarter. The causes of the elevated volatility can be attributed to a number of confidence-sapping events, namely:unsettling geopolitical developments in...

Africa

We recently returned from a visit to Pakistan where we met with a cross-section of businesses. In all honesty, we weren’t quite sure what to expect which allowed for a pleasant surprise. The management teams we met with were most impressive and the companies well run, with exciting prospects given the dynamics of the Pakistani market. What was even more striking was the general level of interest...

Market Review

Investor risk appetite waned in the first quarter of 2014. This was largely driven by concerns over shrinking global liquidity as the US Federal Reserve gradually ends quantitative easing; weak economic data out of China; and political instability which culminated in the annexation of Crimea by Russia. The net result saw capital flows redirected from emerging markets to developed markets. For the...

Bond Outlook

We started the year with a slightly more upbeat stance with respect to long bonds, after the relatively poor previous 12 months. Heading into 2014, a fair amount of bad news was already in the price: 2013 had seen a meaningful sell-off in yields; the currency had materially depreciated and continued to do so in January; and QE tapering had been announced and implemented by the US...

Coronation keeps its crown

Coronation has again emerged as the top manager of domestic unit trust funds in the quarterly PlexCrown Fund Ratings survey.The survey rates unit trust managers based on the risk-adjusted performance of their funds across all the unit trust sectors and over periods of up to five years. Coronation Fund Managers overtook Allan Gray as the leading fund manager in the last quarter of 2012 and has...

Brazil

Coronation’s Global Emerging Markets Fund has just over one-quarter of the portfolio invested in Brazilian equities. Given our clean slate, bottom-up approach to building portfolios, it should not be surprising that we are often significantly more exposed to certain countries than the index and many of our peers. In this regard, we are frequently asked why we have significant...

Q&A with Karl Leinberger

Karl Leinberger is chief investment officer at Coronation Fund Managers. After a number of years of strong gains on the JSE, some analysts are predicting a pullback in 2014 — do you share that view? We don’t take a short-term view on equities at Coronation so all my comments really look at a longer-term horizon. We think the JSE is pretty fully valued as it stands so we have quite low exposure...

Better prospects for SA fixed interest in 2014

Not surprisingly, given the outsized returns experienced in 2013, the first quarter of 2014 was a lot more volatile than at any time over the past year or two. In the end, however, equity markets were essentially directionless over the full quarter. The causes of the elevated volatility can be attributed to a number of confidence-sapping events, namely:unsettling geopolitical developments in...

Coronation: top of the heap

IT IS unusual for a house to be so dominant across unit trusts and institutional funds at the same time. But Coronation today is an exception. Over five years, all five of its flagship unit trusts are in the top quartile: Top 20, Balanced Plus, Capital Plus, Balanced Defensive and Strategic Income. Its institutional performance is just as strong, as shown by the institutional surveys. In the...

How Coronation grabbed the crown

There have been several walkouts to set up new fund managers over the past 20 years. in 1998 about 16 people left gensec asset management (part of sanlam) to form gryphon. a few months later there was a similar-sized walkout from old mutual to form velocity. Inevitably, these firms wanted to be seen as the next Coronation. Because by far the most successful of the walkouts was in 1993 when 15...

Fourth consecutive win for Coronation at Morningstar South Africa Fund Awards

Coronation Fund Managers has been awarded the prestigious title of Morningstar Best Large Fund House for a fourth consecutive year. This was in addition to receiving two individual fund awards at the 2014 Morningstar South Africa Fund Awards ceremony held in Cape Town last night. Coronation Strategic Income was named the Best Bond – Short-term Fund for the second year in a row, while...

The balanced fund dilemma

Investing in times of uncertainty. JOHANNESBURG - Balanced unit trust funds have seen significant inflows over the past few years on the back of generally good performances. Also, amidst growing uncertainty and volatility, many investors have decided to leave decisions around asset-allocation to the professionals. According to the Association for Savings and Investment South Africa (Asisa), four of...

Why volatility is your friend

Cape Town - Since the start of 2014 the JSE has bucked like a rodeo bull, and the investors riding on its back would be excused for feeling a little queasy. The tone was set on the first few days of trading when the bourse rose to a record high of 46 836 on day one, and then almost immediately dipped by over 1 000 points in the...

Repeat win for Coronation as Raging Bull SA Management Company of the Year

For the second consecutive year, Coronation Fund Managers was named South African Management Company of the Year at the 18th annual Raging Bull awards ceremony held in Cape Town last week. The award is given to the unit trust management company with the most consistent overall risk-adjusted performance across a suite of five or more rand-denominated funds (both domestic and international) with a...

Coronation crowns it

Coronation this week won the Raging Bull Award for the Management Company of the Year for the fifth time. The Raging Bull Awards gala dinner, which was hosted by Personal Finance, ProfileData and PlexCrown Ratings, was held in Cape Town on Wednesday evening. The award is based on the performance of all a company’s funds under management on a risk-adjusted basis for periods up to five years to the...

The big investment lessons of the last few years

Top fund managers discuss what uncertain markets have taught them.​ Cape Town – Since the financial crisis of 2007-2008 the world's stock markets have moved in extreme and often surprising ways. Despite sharp downturns, the gains have been more pronounced than most could have foreseen in the dark days at the end of 2008 and the start of 2009. On top of this...

Political theatre – Egyptian style

he many years of Mubarak rule will not be remembered for its economic reform and societal development; the words ‘cronyism’ and ‘selective repression’ would spring to mind long before. Yet as stagnant as the economy was pre-revolution, the subsequent vacuum and power interplay has stalled the economy. Egypt has been witnessing an exercise in leadership abdication with the military arm-wrestling...

Listed property in 2014

Is the party over? JOHANNESBURG – The total return of the local listed property sector has been 5.3% in the year to date, a far cry from the double-digit environment that investors have almost become accustomed to over the past decade. However, analysts still believe the sector offers attractive, inflation-beating long-term returns, although it might experience some volatility in the short-term...

Outstanding results from Coronation Fund Managers

- Assets under management of R492 billion, up 45% - Diluted headline earnings per share of 416 cents, up 110% - Total dividend per share of 416 cents Leading independent asset manager Coronation Fund Managers (Coronation) today reported an outstanding set of results for the year to 30 September 2013, as it celebrates its 20th year in business. The continuation of...

Coronation funds rank highly at Africa AM Performance Awards

Coronation Fund Managers received a number of awards across its institutional fund range at the second annual Africa Asset Management Performance Awards ceremony held in Cape Town on 24 October 2013. The Coronation Houseview Equity Portfolio was named South Africa Equity Fund of the Year, while the Coronation Domestic Houseview Portfolio was named South Africa Balanced Fund of the Year. The...

Emerging market search engines 2013

The bursting of the dot.com bubble in 2000 has left many investors sceptical about the long-term investment appeal of technology companies. In many cases this reticence is quite justified – no single industry better illustrates the idea of creative destruction than technology. Former industry leaders who, as recently as five years ago, looked unassailable in their positions, are today struggling...

Bond Outlook

September marked a turning point in the fixed interest market’s losing streak, recording the first positive month since May. The All Bond Index (ALBI) rose 3.9% in September, beating cash at 0.43% and inflation-linked bonds (ILBs) at 2.91%. Long-dated bonds were the better performing area of the curve, running well ahead of the short end. Vanilla bonds were the superior performers...

Unintended consequences of regulatory intervention

In 2002, a conservation-minded couple – a photographer and helicopter pilot – had a big idea. They decided to take 12 000 overlapping photographs, documenting the entire coastline of California to provide a baseline against which the impact of future development and coastal erosion could be measured. The entire photographic record was made publicly available on a website that still...

Electricity

‘Our one source of energy; the ultimate discovery’ (OMD) Readers of a certain age may fondly remember the new wave bands of the late 70s and early 80s. Some may still have LP collections, gathering dust in the garage, that feature albums from the synthpop band Orchestral Manoeuvres in the Dark (OMD). Best known for massive hits such as Enola Gay and Joan of Arc, it was their first single...

Fixed interest - the benefits of an unconstrained mandate

Quantitative easing and the US Fed’s zero interest rate policy have propped up the price of government bonds and kept yields at artificially low levels. This ‘unsustainable reality’ was brought squarely into focus as bond yields rose sharply on the news of the Fed’s intention to taper its bond buying programme. The US 10-year bond increased 61% from 1.63% at the beginning of May, to 2.62% at the...

Equity market update

hairman of the US Federal Reserve, Ben Bernanke, signalled to the market in May that it was contemplating an exit from its aggressive quantitative easing policy. Markets reacted violently to the news in what is now known as the ‘taper tantrum’. US bond yields spiked dramatically and emerging market bonds followed. The US dollar strengthened, the gold price fell sharply and most...

Standard Bank

outh Africa currently enjoys the lowest interest rates in over 40 years, and there is every likelihood that the next meaningful move in rates will be up. Against such a back-drop, one would traditionally expect that as interest rates rise, banks will experience rising defaults and therefore struggle to grow earnings. Despite factoring in some deterioration in bad debts going forward, we believe...

Get that price right

Karl Leinberger, chief investment officer at Coronation Fund Managers, says the spectrum between growth and value investing is best delineated by the degree to which investors are disciplined on price. “For some, value means buying distressed, broken businesses. But the biggest holding of [Warren] Buffett, considered by many to be one of the world's greatest value investors, are not classic value

Zero interest rates will not last forever

The collapse of Lehman Brothers and capitalism's so-called near death experience in September 2008 heralded the start of an extraordinary period for monetary policy. In the United States, the federal funds rate was cut from two percent to zero over the course of a few meetings of the Federal Reserve Board...

Reform aims to increase efficiency

A NEW technical discussion paper released by National Treasury earlier this month has given fresh impetus to the process of retirement industry reform, which seeks to achieve a fair balance between the interests of consumers and pension fund service providers...

Looking for the next wave of multinationals

Ten years ago few would have predicted that Mr Price would be able to grow earnings by 25 percent a year for the next decade, being a player in what seemed at the time to be a fairly well served retail clothing market. Suhail Suleman, emerging markets co-portfolio manager at Coronation explains that the potential for getting in the next Mr Price at ground level is one of the motivations...

Coronation still wears top management crown

Coronation claimed the title of the top manager of domestic funds in this quarter's PlexCrown survey - the third time in a row that it has been ranked number one.Sixteen managers of collective investments qualified for an overall rating based on the risk-adjustment performance of most of their funds for periods of up to five years to June 30...

Stagflation intensifies

It was a torrid quarter, both globally and in South Africa. The outcomes, in short, underlined the stagflationary environment facing South Africa. Local growth indicators, though not recessionary, continued to show a lacklustre growth background, and many forecasts (ours included) have been downgraded to well below 3% – some are even below 2% – for growth this year. However, there...

Spar

Bonds continued to sell off during June, resulting in negative returns both for the month and for the quarter as a whole. The All Bond Index (ALBI) lost 1.5% in June and 2.3% over the quarter, while inflation-linked bonds (ILBs) were more negatively affected because of their high duration and lost 5.5% in June and 4.9% for the second quarter of 2013. Cash returned 0.4% in June and 1.3%...

Emerging markets

No group of companies plays to India’s strengths and circumvents its weaknesses like its Information Technology (IT) services providers. India has an ever-expanding pool of English-speaking graduates which provides the staff that the IT services industry needs at reasonable salary levels, while the nature of its outputs is such that they can be transmitted electronically or via a...

Tilting at the windmills

It has been almost five years since we launched our Africa funds. During that time we have learnt many lessons, one of the most important being the relevance of good corporate governance. It is not that we didn’t appreciate this aspect before, but in South Africa and most other developed markets, the bar is set fairly high and we tend to take it for granted that companies will...

Coronation named Equities and Balanced Fund Manager of the Year at POA awards ceremony

Coronation Fund Managers was once again honoured at the annual Imbasa Yegolide Awards for Professional Excellence, hosted by the Principal Officers Association on 10 June 2013. For the fourth consecutive year, Coronation received the award for Equities Manager of the Year, and was also voted Balanced Manager of the Year. Kirshni Totaram, Head of Institutional Business at Coronation...

Bond Outlook

Bonds continued to sell off during June, resulting in negative returns both for the month and for the quarter as a whole. The All Bond Index (ALBI) lost 1.5% in June and 2.3% over the quarter, while inflation-linked bonds (ILBs) were more negatively affected because of their high duration and lost 5.5% in June and 4.9% for the second quarter of 2013. Cash returned 0.4% in June and 1.3%...

Mining in South Africa

Resource mining around the world has always elicited much interest from governments, employees and populations in general. The concept of extracting wealth from sovereign territory has always led to vexing questions about how the wealth and proceeds are split between those that are prepared to invest the capital, those that do the dirty (and often dangerous) work and the people and...

The canary in the coal mine

The collapse of Lehman Brothers and capitalism’s so called near death experience in September 2008 heralded the start of an extraordinary period for monetary policy. In the US, the federal funds rate was cut from 2% to zero over the course of the next few meetings of the Federal Reserve Board. The zero interest rate policy was, however, not deemed to work well enough and was...

Entrust your savings to well-managed corporations

Global equity markets, as summarised by the MSCI world index, rose by a decisive 11.35% ( in dollars) in the first four months of this year...

Listed property defying expectations

This anxiety would have come at a steep opportunity cost - the listed property market has delivered more than 35% in the year to end-April. As Keillen Ndlovu, portfolio manager at Stanlib, put it: "Yes, we have had a great run, but it's been justified." This is because the growth in income and distributions continues to meet or exceed expectations...

Coronation delivers excellent results

Underpinned by a substantial increase in assets under management and very strong investment performance. Assets under management at R409 billion Diluted headline earnings per share of 163.4 cents Interim dividend per share of 163 cents Leading independent, JSE-listed asset manager Coronation Fund Managers (Coronation) today announced an excellent set of results for the six months to...

Bond outlook

South African bonds were reasonably resilient over the quarter, despite the high level of news impacting the bond market. Continued foreign inflows provided the major support, while local fundamentals presented a backdrop of overall negative newsflow. Inflation-linked bonds (ILBs) returned 1.84% for the quarter and the All Bond Index (ALBI) eked out a 1% return, lagging cash at 1.3%...

Equity market update May 2013

Global equity markets rallied in the first quarter of 2013, with the MSCI World Index up 7.9% in US dollars. This is despite concerns over Europe’s recession and sovereign debt crisis, fears of a pronounced economic slowdown in China, and political shenanigans over the US’s fiscal position. It is clear in their actions to-date, that governments are determined to avoid the globe...

HCI

The year 2003 was significant in the life of Cape-based investment holding company, Hosken Consolidated Investments (‘HCI’). Its major asset, a 5% stake in the unlisted Vodacom group, was sold for R1.5 billion (having been valued at R90 million at the time of acquisition). Interest in the company waned following this, as many shareholders held HCI shares to gain exposure to Vodacom...

The active versus passive debate

The debate between active and passive investing has once again taken centre stage in much of the financial press. While the take-up of passive investing in South Africa is still relatively low, it is curious to see that the majority of the data presented is in favour of passive, with very little being said in support of active investing. Both investment approaches have merit and...

Retirement reform

‘If choice architecture is thoughtfully established, it can nudge us in beneficial directions without restricting freedom of choice’ – Richard Thaler and Cass Sunstein National Treasury released an updated paper on South Africa’s proposed retirement system at the time of the 2013 national budget announcement. The document summarises the current state of the retirement reform process...

Stuck in the mud

There’s a nasty little feedback loop in South Africa at the moment: The wide current account deficit (partly due to local factors and partly due to external ones) is keeping the rand weak, which is fostering inflation; while domestic growth seems to be struggling, which is also partly reflective of lower export demand hitting the manufacturing sector. The mining strikes have also...

Raging Bull champion Coronation strengthens its lead

Coronation Fund Managers, the winner of the Raging Bull Award for the Domestic Management Company of the Year for 2012, has strengthen its leading position this past quarter with a near-perfect score in the PlexCrown Ratings survey of unit trust management companies...

Listed property still outshines other asset classes

Performance expected to remain volatile. JOHANNESBURG – Listed property was the star pupil of asset classes during 2012 with a total annual return on investment of around 36%, but most analysts warned that the sector would not be able to continue its dominance going forward. However, it seems that listed property has defied the odds – in the short term at least – and has rewarded investors with a...

Offshore equities can still do you a world of good

The continuing rally in global equity markets has rewarded unit trust investors who heeded fund managers' advice, following the financial crisis in 2008, to invest in these markets. The strong depreciation of the rand has also benefitted those who invested in offshore equities at least a year ago...

Global Equity funds shoot lights out

ANYWHERE in the world an annual return of 20% on an investment would be considered excellent. However, South Africans invested in global equity unit trusts have earned that sort of return in just the last three months,. The top ten global equity fund registered in South Africa have all gained at least 17% since the start of 2013. The best of them, the old Mutual Global Equity Fund, has gone...

International outlook (commentary for the first quarter of 2013)

Performance was generally very positive from developed market risk assets for the first quarter of 2013. The Nikkei (up 20.1% in yen) spearheaded the total return performance charts on the back of Japan’s rhetoric on inflation targeting and monetary policy. Other core developed equity markets also performed well, with the S&P 500 Index, FTSE 100 Index and the DAX Index up 10.6%, 10.0%...

The blurring of the line between emerging and developed markets

Our process often leads us towards consumer-focused companies as they typically have most of the qualities we look for in our investments. These include high barriers to entry, strong branding, stable margins, low capital intensity, high cash generation and little risk of falling prey to technological obsolescence. With this in mind, we...

Emerging markets May 2013

In 2012 emerging markets returned close to 19%, after a torrid 2011. Within emerging markets, however, most consumer businesses returned far in excess of the benchmark, particularly those with very dominant positions in their home markets. In the six years that Coronation has been researching and valuing emerging market companies, we have compiled a shortlist of what we believe to...

2013 Morningstar South Africa fund awards

Coronation Fund Managers came away with top honours at the Morningstar South Investment Awards which was held on 26 February at The Table Bay Hotel in Cape Town. The Cape Town-based firm won five awards during the evening, one of which was the overall award for Best Large Fund House; its third consecutive win in this category. The award for best Small Fund House went to Southern Charter for...

Africa - dont miss the secular change that is rapidly taking place

While our Africa funds are not directly accessible to individual investors, they are used as underlying building blocks in some of our managed funds, namely Coronation Market Plus and Coronation Balanced Plus. ​ We’re increasingly fielding questions as to whether Africa is overhyped. Has the pendulum swung from Afro-pessimism to fever pitch Afro-optimism? And where does the point between perception...

International outlook May 2013

Performance was generally very positive from developed market risk assets for the first quarter of 2013. The Nikkei (up 20.1% in yen) spearheaded the total return performance charts on the back of Japan’s rhetoric on inflation targeting and monetary policy. Other core developed equity markets also performed well, with the S&P 500 Index, FTSE 100 Index and the DAX Index up 10...

Africa May 2013

While our Africa funds are not directly accessible to individual investors, they are used as underlying building blocks in some of our managed funds, namely Coronation Market Plus and Coronation Balanced Plus. We’re increasingly fielding questions as to whether Africa is overhyped. Has the pendulum swung from Afro-pessimism to fever pitch Afro-optimism? And where does the point

It's essential to establish a workable retirement strategy

ONE of the toughest financial planning challenges for retirees is to ensure that their post-retirement income is sustainable over the full period of retirement, without compromising more than is necessary on living standards in the first half...

Top honours at 2013 Morningstar South Africa Awards

For the third consecutive year, Coronation Fund Managers was named Best Large Fund House at the 2013 Morningstar South Africa Fund Awards ceremony held in Cape Town this week. The Morningstar awards are held annually to recognise individual funds and firms that have delivered outstanding returns while maintaining prudent risk management. The awards‟ methodology emphasises both...

Funds toast a year of pleasant surprises

The unit trust industry this week celebrated its successes at the 17th Raging Bull Awards after a year and of pleasant surprise in the financial markets. Although most asset managers had been expecting lower returns in 2012, there was a bull market in local and foreign equities, as well as in the domestic bond and property markets...

Coronation fund gets the risk-return balance right

Investors in the fund that won the award for the top-performing prudential fund had their cake and got to eat it too over the past five years the fund's manager says. The Coronation Balance Defensive Fund is a low-risk fund despite keeping its investments in riskier assets to below 40 percent of the fund, the fund returned the best returns for the lowest risk among its many peers in the asset...

Coronation named Best Domestic Management Company of 2012 at Raging Bull awards ceremony

Coronation Fund Managers was named best domestic management company of 2012 at the 17th annual Raging Bull Awards ceremony held in Johannesburg last night. Coronation’s first place in the domestic management company of the year category was based on the most impressive and most consistent overall performance across a suite of rand-denominated funds (both domestic and international)...