Poor short-term performance in some of Coronation’s funds may have been a catalyst for net outflows of R79bn over the year to September, CEO Anton Pillay said on Tuesday. "We don’t think [poor] performance is a cause of the outflow, but it might have been a catalyst. Some of our funds have been under pressure [over the past 12 months]," he said. Despite these outflows, Coronation’s assets under management dropped just R11bn to R599bn over the 12 months to September, boosted by investment returns. These outflows followed a sustained period of exceptionally high inflows, which Coronation knew were not sustainable, Pillay said. "At the peak, Coronation was attracting 30%-35% of the flows in the long-term asset management space." Coronation has a 13.1% market share in the long-term retail unit trust industry and nearly 15% in the institutional sector. The bulk of the outflows (R61bn) were from its institutional business, which had assets under management of R374bn. Coronation had closed...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.