Report
David Talpert ...
  • Harry Botha
  • Warwick Bam

Avior Financials | Coronation | Peregrine | Repo rate cut | Investment Banking statistics

Coronation's Dec '19 institutional factsheets highlight impressive 2019 investment returns. We estimate Group Q1 FY ‘20f net outflows of R17.8bn and Dec '19 AUM to remain flat at R577bn.

Peregrine's hedge funds generated strong returns in FY '19. We expect PGR to report improved performance fees in H2 ‘20f.
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Due to heightened credit risk in the SA economy, SA Repo rate cuts are positive for SA banks' earnings growth prospects in our view (as lower impairment charges and higher advances growth offset lower NIMs). Our top picks in the sector are Standard Bank and ABSA.

Standard Bank and Investec's investment banking divisions performed well in Q4 CY '19 according to Refinitiv's Investment Banking statistics.
Underlyings
Coronation Fund Managers Limited

Coronation Fund Managers is a third-party fund management companies. Co. is organized into three key segments: institutional, which manages institutional assets in South Africa in both segregated and pooled mandates; retail, which provides a range of funds distributed through the non-affiliated channels of independent financial advisors and linked investment service providers; and international, which is being managed from Cape Town and London. Co.'s customers include retirement funds, medical schemes and multi-manager companies in South Africa, banking and insurance groups, investment advisory businesses, independent financial advisors, individuals and direct unit trust accounts.

Peregrine Holdings Ltd.

Peregrine Holdings Limited is a financial services company. The Company provides with investment management solutions in wealth and alternative assets. Its segments include Wealth Management, Asset Management, Broking & Structuring, Stenham and Advisory. The Company operates wealth and asset management through its subsidiaries, Citadel Holdings Limited and Peregrine Capital Proprietary Limited. The Broking & Structuring segment includes brokerage, scrip lending income, interest and dividend income earned on trading, equities and futures transactions and fees charged for consulting and executing derivative strategies on behalf of clients. The Company operates Stenham segment through its subsidiary, Stenham Limited and its subsidiaries. Its advisory segment represents the returns on corporate finance, advisory and investment business generated from services, which range from financial, commercial and legal advisory and transaction execution services.

Provider
Avior Capital Markets
Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

Analysts
David Talpert

Harry Botha

Warwick Bam

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