Coronation Fund Managers (CML) H2 2024 earnings summary

Executive summary

• Assets under management rose 11% year-over-year to R667bn, with revenue up 7% to R3.9bn, driven by strong market returns and portfolio outperformance.

• Maintained a resilient business model and consistent investment philosophy, delivering long-term outperformance across local and global strategies.

• Fund management earnings per share (excluding SARS) increased 9% to 402.9c; headline EPS surged 245% to 630.5c.

• Net outflows moderated to 8.1% of average AUM, reflecting persistent industry-wide cash flow negativity.

• Proposed B-BBEE transaction to increase black ownership to 51%, enhancing eligibility for new mandates and aligning with regulatory expectations.

Financial highlights

• Revenue from fund management grew 7% to R3,913m; management fees up 3% to R3,440m; performance fees surged 61% to R473m.

• Operating income from fund management rose 29% to R2,017m; profit for the year jumped 245% to R2,205m, reflecting the SARS matter reversal.

• Total operating expenses rose 5% to R2,255m; fixed expenses increased 10% to R1,026m; variable expenses up 19% to R1,209m.

• Cash and cash equivalents increased to R1,429m; capital surplus at R1,190m; special dividend of 153cps and total dividend of 413cps declared.

• Final dividend declared at 228cps; total dividends for the year include interim (185c) and special (153c) payouts.

Outlook and guidance

• Cautious optimism for GDP growth amid easing inflation and policy rates, but economic growth remains a key challenge.

• Management remains optimistic about long-term return prospects for active managers in both local and global markets.

• Persistent industry headwinds expected, including skills shortages, regulatory pressures, and continued net outflows.

• Continued investment in talent, technology, and compliance to ensure resilience and adaptability.