Avior Capital Markets - Coronation Fund Managers Limited (12AS) Coronation | At the mercy of the markets

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Avior Capital Markets

David Talpert ...

Harry Botha

Coronation | At the mercy of the markets

We expect Coronation Fund Managers (CML) to report a 22% decline in FY '19 HEPS. CML's AUM has remained flat over the past five years due to muted equity returns and over R180bn in cumulative net outflows. In H2 '19, we expect net outflows of R21bn. Due to CML's high market share, we believe there are limited growth opportunities in SA. We therefore expect CML's AUM to increase in line with market returns. Due to our expectation of continued net outflows, we estimate an AUM CAGR of 3% over the next three years. We remain cautious on CML's outlook and believe there is limited upside given current market sentiment.

04/10/2019 13 EN

Underlying

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.

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ZAE000047353 Johannesburg Stock Exchange South Africa

Provider

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.

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Analysts

David Talpert

Harry Botha

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Coronation | At the mercy of the markets

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

Coronation | A slow improvement in net flows

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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