Fund managers: Mighty Coronation stumbles
Midsize managers like PSG, Truffle, Ashburton and Visio are upping the stakes in the asset management game
Given the 13% fall in Coronation’s headline earnings and the fact that 30% of the profits make up the bonus pool for the business, some fund managers might not scrape together quite enough for another Lamborghini. They might have to slum it in a Porsche. At one stage, it looked as though Coronation Fund Managers would be getting 35% of flows into the unit trust industry in perpetuity. But these flows are cyclical and Coronation, the only listed self-contained large asset manager in SA, had to concede that it experienced outflows of R18bn during the year to September. During the September quarter it had outflows of R1.27bn, excluding the low-margin money market fund. At the same time, Allan Gray, Prudential, Investec, Absa and Nedgroup each had net inflows of more than R4bn. Coronation does, however, remain a strong cash generator for staff and shareholders. In fact, CE Anton Pillay says that 100% of the free cash flow was distributed to shareholders in dividends. Apart from pay, ren...
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