Coronation Fund Managers has taken action to curb frequent switching in and out of its offshore feeder funds, after it discovered that one of its portfolio managers was engaged in such activity to exploit pricing delays for his own gain.

The Cape Town-headquartered asset manager detected unusually high levels of trading in three of its unit trusts by certain clients in December 2020, prompting a detailed review of all switching activity across its entire unit trust range over the three preceding calendar years. The investigation identified five clients who had switched frequently in and out of three of its global equity unit trust feeder funds to exploit price inefficiencies between their local and offshore pricing...

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