Coronation’s share price leapt nearly 6% on Tuesday to close at R65.70, as an improved investment performance and plans to stem outflows from its funds gave shareholders cause for optimism. Flows from global retirement funds and the reopening of certain domestic portfolios to institutional investors would offset expected outflows, CEO Anton Pillay said on Tuesday. Outflows were expected to continue, given Coronation’s large market share and in line with overall outflows in the retirement fund space, he said. For the six months to March 2017, Coronation recorded net outflows of R34.6bn, mostly from institutions. Assets under management declined R23bn, buoyed by investment returns, in the period. Overall, assets are down R34bn to R576bn from a September 2015 peak of R610bn. Large active asset managers, such as Coronation, Allan Gray and Old Mutual, are competing with index-tracking products and more nimble entrants with specialised mandates. Meanwhile, stagnant economic growth and job...
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