Coronation Fund Managers is different from the soon-to-be-listed Investec Asset Management (IAM) in several ways. It is true that both derive a large proportion of their income from the SA pension fund and unit trust markets. But about 60% of IAM’s profit is sourced from overseas. It is building up large sales teams in New York and Hong Kong to increase this. Coronation always had a more tight-fisted approach to international expansion. It had a leading position in the global fund of hedge funds market 20 years ago but was not prepared to commit the resources to sustain this. About 45% of Coronation’s profit is from international products, but this includes global products sold into the local market — Coronation’s fund management activities are all run from Cape Town. Perhaps it is not too surprising then that senior Coronation portfolio manager Duane Cable defected to Investec, where he will have far wider career opportunities. Coronation’s returns remain primarily geared to the JS...

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