Coronation, one of SA’s largest asset managers, says it has borne the brunt of a depressed economy, a declining retirement-savings market with formal employment falling and what it described as the JSE’s “mediocre return”. The company reported a 1.8% decline in revenue in the year to end-September, while assets under management fell 4.4% to R586bn, the lowest in five years. Coronation’s revenue growth is dependent on two things: market returns and the ability to generate returns above the index benchmark through active asset management. The all share is down 14.18% so far in 2018. Coronation’s fund fact sheets show that its South African specialist equity fund, Houseview Equity, has underperformed the benchmark by 3% year to date. “On average, the equity market actually underperformed cash for the last three years, and you had bonds, property and equity underperforming cash in 2018. “Second, we had good long-term performance, but our alpha [the ability to outperform the benchmark in...

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