Volatile markets take their toll on Coronation
Coronation Fund Managers on Tuesday posted a double-digit decline in full-year profit, partly reflecting lower performance fees as result of volatile financial markets. The fund manager suffered a 13.3% drop in diluted headline earnings per share (HEPS) to 447.6c in the year to September from the year-earlier period. Coronation’s earnings are largely influenced by the performance of the markets and the size of the assets under management. To this end, assets under management fell to R599bn due total net outflows of R79bn, the bulk of which were offset by capital appreciation. "Due to a decline in the level of performance fees generated compared to the prior corresponding period, combined with the impact of the implementation of our new retail fee structure, revenue for the current period declined by 9.0% to R4.0bn," the company said in a statement. The MSCI emerging markets index delivered a 16.8% total return in dollar terms in the review period versus the 12% of the MSCI all-count...
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