Coronation expects fewer people to save as retrenchments rise
The group reported net outflows of about 5.8% for SA institutional assets, and expects further pressure as Covid-19 batters the economy
26 May 2020 - 11:43
bykarl gernetzky
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Coronation Fund Managers expects SA’s pool of savers to shrink further as employers lay off staff and cut salaries during the Covid-19 pandemic.
The group reported net outflows of 5.8% for its SA institutional assets in its six months to end-March, while assets under management fell 11% to R508bn as Covid-19 battered global markets.
The group said profit rose 8% to R624m, adding it had “meticulously” managed costs, while also seeing a relatively good short-term performance in its equity portfolios.
Coronation declared a dividend of 178c per share, up from 165c previously.
“Net outflows were in line with our estimate of those experienced by the SA asset management industry and represented 5.8% of our opening balance for local institutional assets,” the group said in a statement.
“We expect outflows to continue to be impacted as the ongoing local savings pool shrinkage is exacerbated by financially distressed employers having to retrench employees or cut their earnings.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Coronation expects fewer people to save as retrenchments rise
The group reported net outflows of about 5.8% for SA institutional assets, and expects further pressure as Covid-19 batters the economy
Coronation Fund Managers expects SA’s pool of savers to shrink further as employers lay off staff and cut salaries during the Covid-19 pandemic.
The group reported net outflows of 5.8% for its SA institutional assets in its six months to end-March, while assets under management fell 11% to R508bn as Covid-19 battered global markets.
The group said profit rose 8% to R624m, adding it had “meticulously” managed costs, while also seeing a relatively good short-term performance in its equity portfolios.
Coronation declared a dividend of 178c per share, up from 165c previously.
“Net outflows were in line with our estimate of those experienced by the SA asset management industry and represented 5.8% of our opening balance for local institutional assets,” the group said in a statement.
“We expect outflows to continue to be impacted as the ongoing local savings pool shrinkage is exacerbated by financially distressed employers having to retrench employees or cut their earnings.”
gernetzkyk@businesslive.co.za
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