Coronation Fund Managers’ assets under management fell by 2% to R746 billion at the end of March 2026, largely because of market moves, although flows turned positive during the six months.
Coronation’s interim results, published on 26 May 2026, described a period that started with market strength and ended in a sharp risk-off turn after conflict escalated in the Middle East.
Global markets, Coronation said, ended 2025 on a high after a year of resilient growth, despite elevated geopolitical uncertainty and a shifting global trade order. The constructive tone carried into early 2026 before reversing sharply as the Middle East conflict intensified and the closure of the Strait of Hormuz brought the economic consequences of an oil shock into focus.
Locally, Coronation said it is concerned about the impact of sharply higher fuel prices on households and South Africa’s “nascent economic recovery”, warning that transport and input costs ultimately feed into everyday budgets.
Alongside that, the group pointed to developments it believes can rebuild financial credibility and confidence over time. These include South Africa’s exit from the Financial Action Task Force grey list and an upgrade in the sovereign credit rating.
Coronation highlighted improvement in key state-owned entities, citing a more stable power supply and progress on energy reform, plus early signs of recovery in transport and logistics infrastructure. It also pointed to intensified efforts to address crime and corruption and welcomed the government’s willingness to involve the private sector to bolster implementation capacity.
It added that confidence should improve further as the Government of National Unity matures and said the 2026 Budget underscored a commitment to fiscal discipline, with clearer signs of improved governance in several key ministries.
At the same time, Coronation flagged water infrastructure and supply as “of grave concern” and raised the condition of many municipalities as a material risk.
Financial performance
Although closing AUM fell by 2%, the group said average AUM rose by 15% to R776bn (from R677bn), which supported revenue stability across the half-year.
Revenue increased by 3% to R2.08bn compared to the prior corresponding period.
Although flows turned positive during the period, Coronation cautioned this did not indicate a structural shift, saying the savings industry remains constrained by broader employment and economic pressures and will need materially stronger growth for flows to inflect sustainably.
Fund management earnings per share increased by 2% year-on-year to 203.7 cents, which Coronation described as encouraging given a strong base and the cyclical sensitivity of asset management to market levels and sentiment.
Coronation reported earnings per share up 6% to 218 cents (from 205.1 cents), while headline earnings per share declined by 5% to 195.1 cents.
In line with its policy to distribute at least 75% of after-tax cash profit, Coronation declared an interim gross dividend of 203 cents per share, payable from income reserves. That equates to a net dividend of 162.4 cents per share, subject to dividends tax. The prior comparable interim dividend (to end-March 2025) was 200 cents per share, a 1.5% increase.
Portfolio positioning and performance
Coronation said its domestic equity portfolios were impacted in 2025 by an underweight position in gold shares, as an elevated gold price drove a strong bull run. It added that recent market movements and the reaction of the gold price have reinforced its conviction that the risk-adjusted case for owning these assets at current prices carries a “considerable risk of capital loss”.
The flip side, it said, is that recent market dislocations have created “extraordinary stock-picking opportunities”.
Coronation marked two long-running track records. In April, the Coronation Equity Fund and Coronation Balanced Plus Fund (unit trusts) reached 30 years since inception, placing them among a small cohort of South African funds with three decades of performance history.
Coronation said a since-inception investment in the Coronation Equity Fund has grown 59 times (net of fees), delivering 76% more value than its peer-group average. For the Coronation Balanced Plus Fund, it reported 44 times growth (net of fees), adding 42% more value than the peer-group average.
Coronation said 92% of its portfolios have outperformed their benchmarks since inception, 91% have outperformed over 20 years, and 67% have outperformed over 10 years.
Integrating AI into its process
Coronation said it believes artificial intelligence will be transformative, reshaping industries and influencing investment cases across sectors and companies. It said it is anchoring that view in its investment process through research into AI’s implications across regions, industries, and individual firms.
The group said it has invested heavily in capability-building, equipping staff with skills and testing and adopting AI tools in a responsible, well-governed manner, including working in carefully controlled environments as it builds institutional knowledge.
AI, it argued, will amplify existing capabilities and widen the gap between skilled adopters and those who resist, and it said its priority is to remain at the forefront of that shift.
