Coronation Fund seeks new model

Picture: Timothy Bernard

DURBAN – Coronation Fund Managers said it would continue to make substantial investments in its business through various initiatives aimed at entrenching world-class service delivery to its local and growing offshore business.

The group yesterday said the process would include the launching of a new fund administration model that would consolidate its service across local and offshore portfolios as well as insourcing retail client reporting and communication.

“In addition, we are moving our unit trust transfer agency administration to a newly created, 100percent black-owned business, once again demonstrating our commitment to making a real contribution to empowering black South Africans,” the group said.

“These initiatives are on track for completion before the end of this year.”

The group said its results for the six months to end March were in line with expectations. It said that its revenue increased by 7.4percent to R2.08billion, up from R1.94bn, while profit attributable to equity holders increased by 2percent to R782million, up from R763m as compared to last year.

Headline earnings per share increased by 1percent to 223.4cents a share, up from 220.7c.

The group declared a gross dividend of 223c a share after assessing any projected future cash requirements. It said it remained far more optimistic about the outlook for the South African economy, following meaningful changes in the political leadership and certain key institutions.Coronation Fund also said total total assets under management (AUM) declined 4.2percent to R588bn at the end of the period, down from R614bn as compared to the end.

The group said the AUM, however, were up 6percent compared to the same period last year. Total operating expenses increased by 6.8percent, excluding unrealised losses for investments held as seed capital. The group’s institutional business manages R355bn as at the end of March.

It also manages a meaningful share of assets in the local pension funds industry for its South African clients, representing total AUM of R295bn.

In its global clients portfolio the group manages a combined R60bn, while its retail business reported retail assets of R233bn during the period.

Coronation Fund declined 0.76percent on the JSE yesterday to close at R66.80.