Coronation Fund Managers’ CEO Anton Pillay
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Coronation Fund Managers, the independent asset manager with R766 billion of assets under management, is “deeply concerned” about the impact on households and the nascent economic recovery in South Africa due to the sharp increase in fuel prices.
However, there are some “encouraging developments” that provide a basis for “cautious optimism,” says the chairman Saks Ntombela and CEO Anton Pillay, adding that the sharp increase in fuel prices impacts all parts of the economy and will stretch already limited household budgets.
In the company’s financial results for the six months to March 31 released on Tuesday, they noted however that South Africa’s exit from the Financial Action Task Force’s grey list and an upgrade in its sovereign credit rating were important steps to restore financial credibility and investor confidence, over time. Coronation is 52% black-owned and 33% employee-owned.
They observed improvements in some state-owned entities, with a stable power supply and tangible progress in energy reform. There are also early signs of recovery in transport and logistics infrastructure, alongside better efforts to combat crime and corruption.
Similarly, the government’s appetite to involve the private sector and leverage available skills in assisting with these reforms was commendable. “This reform momentum will likely increase as private sector participation, gains traction,” they said.
Business and investor confidence should also see further improvement as the Government of National Unity (GNU), matures.
“The 2026 Budget underscored a commitment to fiscal discipline, and we are seeing clear signs of improved governance in several key ministries,” they said.
In April this year, the Coronation Equity and Balanced Plus Funds (unit trusts) celebrated 30 years since inception, placing them in a small cohort of South African funds with three decades of performance history.
The Coronation Equity Fund has grown 59 times since inception (net of fees), adding 76% in value compared to its peer group average. The Coronation Balanced Plus Fund has grown 44 times (net of fees), adding 42% more value than that of its peer group average.
Ntombela and Pillay said 92% of their portfolios have outperformed their benchmarks since inception, 91% have outperformed over 20 years, and 67% have outperformed over 10 years.
While long-term performance “remains exemplary," Coronation’s domestic equity portfolios were impacted by an underweight position in gold shares in 2025, as the elevated gold price drove a strong bull run.
“Recent market movements and the reaction of the gold price have reinforced our conviction that the risk-adjusted case for holding these assets at current prices carries a considerable risk of capital loss for investors,” they stated.
“We are excited by the extraordinary stock-picking opportunities that recent market dislocations have provided,” they added.
Coronation's fund management earnings per share increased by 2% year on year to 203,7 cents. This was off a particularly strong base and was “encouraging” in the context of a business that remains inherently cyclical and responsive to market conditions over time, they said.
Total assets under management (AUM) fell by 2% to R746bn compared with September 30, 2025, largely due to market movements, while average AUM increased by 15% to R776bn compared with March 31, 2025. Total operating expenses rose by 4% year on year.
“While we are encouraged that flows turned positive in the period, we do not believe this suggests a significant change in the structural backdrop. The South African savings industry reflects the broader employment and economic pressures of the economy in which it operates. Substantial economic growth will be required for industry flows to inflect positively. In the meantime, we expect our flows to reflect the market in which we operate,” the executives said.
BUSINESS REPORT