{"id":843577,"date":"2025-11-18T11:11:50","date_gmt":"2025-11-18T09:11:50","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=843577"},"modified":"2025-11-18T11:11:56","modified_gmt":"2025-11-18T09:11:56","slug":"major-fund-manager-sends-a-warning-about-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/843577\/major-fund-manager-sends-a-warning-about-south-africa\/","title":{"rendered":"Major fund manager sends a warning about South Africa"},"content":{"rendered":"\n

Coronation has warned that South Africa\u2019s savings industry continues to struggle as the major asset manager records a drop in profit for the year.<\/p>\n\n\n\n

In its financial results for the year ended September 30, 2025, Coronation noted that the local savings industry continued its long-term trend of contraction in 2025.\u00a0<\/p>\n\n\n\n

The drop in savings was linked to South African consumers remaining under pressure and unemployment continuing to rise. <\/p>\n\n\n\n

The implementation of the Two-pot Retirement System also added to these structural headwinds in the year under review as more South Africans dipped into their nest eggs to fund immendiate needs.\u00a0<\/p>\n\n\n\n

Coronation\u2019s outflows moderated to 5%\u00a0of average assets under management year-on-year.\u00a0\u00a0<\/p>\n\n\n\n

However, as a major player in the South African savings market, the company remains exposed to industry trends. <\/p>\n\n\n\n

Worryingly, it does not expect to see rapid industry improvements in the foreseeable future.\u00a0<\/p>\n\n\n\n

Despite the challenging backdrop, the company stated that its clients benefited from the combination of strong market outperformance across most of its fund range.<\/p>\n\n\n\n

The company recorded R761 billion in total assets under management, stating that its clients received strong returns despite the challenging economic environment. <\/p>\n\n\n\n

It highlighted the inauguration of the new administration in the United States in January 2025, which created immense uncertainty in capital markets.<\/p>\n\n\n\n

\u201cThe significant shifts in geopolitical alignment and the threat of major trade tariffs added exceptional volatility over the past 12 months,\u201d said Coronation. <\/p>\n\n\n\n

\u201cIn addition, the rapid development and adoption of artificial intelligence applications have the potential to disrupt many existing industries and create new growth industries, amplifying the uncertainty in equity markets.\u201d <\/p>\n\n\n\n

On the domestic front, the protracted 2025 National Budget approval process elevated local volatility. <\/p>\n\n\n\n

However, Coronation said that the budget ultimately being passed in May should strengthen the nation\u2019s new political framework in future.\u00a0<\/p>\n\n\n\n

Financials <\/h2>\n\n\n
\n
\"\"<\/a>
Coronation CEO Anton Pillay<\/figcaption><\/figure><\/div>\n\n\n

Fund management earnings per share (excluding the impact of the SARS matter) were up 12% year on year (y\/y) at 452.2 cents per share.<\/p>\n\n\n\n

Revenue from fund management was up 10% due to management fee growth of 11% and performance fee growth of 3%. <\/p>\n\n\n\n

Total assets under management (AUM) increased by 14% to R761 billion, driven by strong outperformance across its fund range. <\/p>\n\n\n\n

However, the group’s profit for the year dropped by 24% to R1.6 billion amid far higher taxes in the current period. Basic and headline earnings per share also dropped by 25% to 474.3 cents per share. <\/p>\n\n\n\n

The group declared a final gross dividend of 254 cents per share (2024: 228.0 cents) from income reserves. <\/p>\n\n\n\n

Gross total dividends per share decreased by 20% to 454.0 cents per share, from 566.0 cents per share in the prior corresponding period.<\/p>\n\n\n\n

Description<\/strong><\/td>Reviewed 30 Sep 2015 (R Million)<\/strong><\/td>Audited 30 Sep 2014 (R Million)<\/strong><\/td>% Change<\/strong><\/td><\/tr><\/thead>
Fund management activities<\/strong><\/td>–<\/td>–<\/td>–<\/td><\/tr>
Revenue <\/td>4 291<\/td>3 913<\/td>10%<\/td><\/tr>
Other income <\/td>57<\/td>296<\/td>–<\/td><\/tr>
Total operating expenses<\/strong><\/td>(2 351)<\/td>(2 255)<\/td>4%<\/td><\/tr>
Results from operating activities<\/strong><\/td>1 997<\/td>1 954<\/td>2%<\/td><\/tr>
Profit from fund management<\/strong><\/td>2 051<\/td>2 017<\/td>2%<\/td><\/tr>
Profit before income tax<\/strong><\/td>2 202<\/td>2 121<\/td>4%<\/td><\/tr>
Income tax (expense)\/credit<\/strong><\/td>(526)<\/td>84<\/td>–<\/td><\/tr>
Profit for the year<\/strong><\/td>1 676<\/td>2 205<\/td>(24%)<\/td><\/tr>
Earnings per share (cents)<\/strong><\/td><\/td>–<\/td>–<\/td><\/tr>
\u2013 basic<\/td>474.3<\/td>630.5<\/td>(25%)<\/td><\/tr>
\u2013 diluted<\/td>474.3<\/td>630.5<\/td>(25%)<\/td><\/tr>
Headline earnings per share (cents)<\/strong><\/td>–<\/td>–<\/td>–<\/td><\/tr>
\u2013 basic<\/td>474.3<\/td>630.5<\/td>(25%)<\/td><\/tr>
\u2013 diluted<\/td>474.3<\/td>630.5<\/td>(25%)<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"

Coronation Fund Managers has warned that South Africa’s savings industry is facing a long-term contraction, with no end in sight. <\/p>\n","protected":false},"author":95,"featured_media":784873,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[10917],"class_list":["post-843577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-coronation"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/843577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=843577"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/843577\/revisions"}],"predecessor-version":[{"id":843588,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/843577\/revisions\/843588"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/784873"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=843577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=843577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=843577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}