Coronation re-opens strategies to new institutional investors
08 March 2017 Coronation Insights
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 at the time, demonstrating our commitment to outperforming the market over meaningful periods,” said Kirshni Totaram, Global Head: Institutional Business at Coronation Fund Managers.
More than 95% of Coronation’s institutional assets have outperformed their respective benchmarks over 10 years and 100% have outperformed their benchmarks over 20 years.
“The lengthy closure shows we are prepared to make difficult decisions to protect our clients’ interests,” said Totaram.
At the time of closure, Coronation intended to re-open the strategies in due course given the shrinking institutional savings pool in South Africa and anticipated outflows from its local institutional business. “Careful consideration of the capacity this has created, together with our assessment of market conditions and our five-year forecast of industry trends, has allowed us to re-open the strategies,” said Totaram.
“We believe the decision to close our strategies in 2012 was in our clients’ best long-term interest. Similarly, we have been preparing for some time to ensure that the re-opening of our funds will benefit all clients, existing and new.” The re-opening is effective immediately.
Coronation is a significant manager of retirement savings in South Africa. “We continue to work hard at building and maintaining our clients’ trust, which is why more than half the institutional assets under our management are from clients who have been with Coronation for more than a decade,” said Totaram.
If you require any further information, please contact:
T: 021 680 2216
M: 076 282 3995
Notes to the editor
Coronation is one of the largest managers of institutional assets in South Africa, managing assets for more than 80% of the top 200 retirement funds in the country. Our institutional product offering covers all asset classes across a number of geographies in both segregated and pooled mandates. Clients include pension and provident funds, medical schemes, major banking and insurance groups as well as a number of competitors through their multi-manager frameworks. We also manage assets for a growing number of international retirement funds, endowments and family offices. Distribution is conducted primarily through investment consultants, multi-managers and umbrella funds.
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