Coronation share price drops to six-week low on weaker earnings
The fund manager cites disappointing investment performance and little growth in the local pension fund industry
Coronation Fund Managers’s share price dropped to its weakest level in almost six weeks, trimming earlier gains that have made it one of the star performers on the local market, after it reported a worse-than-expected decline in interim earnings. The only listed fund manager on the JSE says disappointing investment performance knocked fee income and continued weak economic conditions ensured little growth in the local pension fund industry. Coronation’s shares fell as much as 3.6% to R49.75, the weakest since April 10, before ending 2.7% down at R50.21, giving it a market capitalisation of R17.6bn. So far in 2019, the shares have risen 21.4% compared to more modest increases of 5.3% for the all share index and 0.7% for the financial index. The share price has pulled back from a recent low of R39 reached in February because of a much better first-quarter performance.
Coronation's assets under management were at R586bn, unchanged from the end of September 2018. But, on average...