STEPHEN CRANSTON: CIA domination needs a succession plan
The future of Coronation, Investec and Allan Gray will depend on its succession planning
The stranglehold the so-called CIA managers (Coronation, Investec and Allan Gray) have on the pension fund market continues. They would have been the right choice in recent years. According to the Alexander Forbes Large Manager Watch, they held first, third and fourth position over five years. Not exactly with stellar returns: top-ranked Investec gave an annualised 8.8%.
But this is in an environment in which the JSE has given a barely inflation-beating 5.8%. It is only international equities, at 15.1%, that would have allowed Investec to score what they did. Prudential, which has been most successful at making inroads into the CIA market share of balanced pension market, was second with a return of 7.6%. Prudential has gathered R177bn of institutional assets.