Coronation re-opens strategies to new institutional investors

Coronation Fund Managers today announced the re-opening of its institutional strategies to new clients. The strategies have been closed for the past five years.

“Our South African specialist Equity, Balanced and Absolute Return products were closed in 2012 as a pre-emptive step to protect our ability to deliver on long-term performance objectives for our existing clients. It was an important move at the time, demonstrating our commitment to outperforming the market over meaningful periods,” said Kirshni Totaram, Global Head: Institutional Business at Coronation Fund Managers.

More than 95% of Coronation’s institutional assets have outperformed their respective benchmarks over 10 years and 100% have outperformed their benchmarks over 20 years.

“The lengthy closure shows we are prepared to make difficult decisions to protect our clients’ interests,” said Totaram.

At the time of closure, Coronation intended to re-open the strategies in due course given the shrinking institutional savings pool in South Africa and anticipated outflows from its local institutional business. “Careful consideration of the capacity this has created, together with our assessment of market conditions and our five-year forecast of industry trends, has allowed us to re-open the strategies,” said Totaram.

“We believe the decision to close our strategies in 2012 was in our clients’ best long-term interest. Similarly, we have been preparing for some time to ensure that the re-opening of our funds will benefit all clients, existing and new.” The re-opening is effective immediately.

Coronation is a significant manager of retirement savings in South Africa. “We continue to work hard at building and maintaining our clients’ trust, which is why more than half the institutional assets under our management are from clients who have been with Coronation for more than a decade,” said Totaram.

If you require any further information, please contact:

Louise Pelser

T: 021 680 2216

M: 076 282 3995

E: lpelser@coronation.co.za

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Notes to the editor

Coronation is one of the largest managers of institutional assets in South Africa, managing assets for more than 80% of the top 200 retirement funds in the country. Our institutional product offering covers all asset classes across a number of geographies in both segregated and pooled mandates. Clients include pension and provident funds, medical schemes, major banking and insurance groups as well as a number of competitors through their multi-manager frameworks. We also manage assets for a growing number of international retirement funds, endowments and family offices. Distribution is conducted primarily through investment consultants, multi-managers and umbrella funds.

Disclaimer

Any information being provided herein (the “Information”) is not designed for use in any jurisdiction or location where the publication or availability of the Information would be contrary to local law or regulation. If you have access to the Information it is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction and it is recommended an investor first obtain appropriate legal, tax, investment or other professional advice prior to acting upon the Information. Coronation Asset Management (Pty) Limited and Coronation Investment Management International (Pty) Limited are authorised Financial Services Providers regulated by the Financial Services Board of South Africa. Coronation Asset Management (Pty) Limited and Coronation Investment Management International (Pty) Limited are subsidiary companies of Coronation Fund Managers Ltd, a company incorporated in South Africa and listed on the JSE (ISIN: ZAE000047353). The Information is for information purposes only and does not constitute or form part of any offer to the public to issue or sell, or any solicitation of any offer to subscribe for or purchase an investment, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract for investment. Unit trusts should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance. Note that individual investor performance may differ as a result of the actual investment date, the date of reinvestment of distributions and dividend withholding tax, where applicable. Where foreign securities are included in a fund it may be exposed to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in exchange rates may cause the value of underlying investments to go up or down. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment Schemes Manager approved by the Financial Services Board in terms of the Collective Investment Schemes Control Act. Unit trusts are traded at ruling prices set on every trading day. Unit trusts are allowed to engage in scrip lending and borrowing. Coronation Fund Managers Limited is a Full member of the Association for Savings & Investment SA (ASISA).Opinions expressed in this document may be changed without notice at any time after publication. Nothing in this document shall constitute advice on the merits of buying and selling an investment.