Coronation Fund Managers reported higher assets under management (AUM) and stronger revenue for the year to the end of September 2025, even as a previously concluded tax matter and continuing pressure in South Africa’s savings market weighed on certain year-on-year comparatives.
The group’s total AUM rose by 14% to R761 billion, and average AUM for the period increased by 12% to R705bn. Coronation attributed the increase in total and average AUM to strong outperformance across much of its fund range, as well as favourable market conditions. It said clients benefited from a combination of compelling outperformance, strong markets across many of its funds, and asset allocation decisions within its multi-asset strategies.
Coronation reported that revenue increased by 10% to R4.291bn, up from R3.913bn in the prior corresponding period. The group said revenue from fund management rose because of an 11% growth in management fees and a 3% growth in performance fees.
Fund management earnings per share (EPS), excluding the impact of the South African Revenue Service matter, increased by 12% to 452.2 cents per share, from 402.9c in the prior corresponding period. Coronation said fund management earnings are used by management to measure operating performance and exclude the net impact of fair value gains and losses and related foreign-exchange movements on investment securities held for seeding products.
Including the effect of the SARS matter, fund management EPS decreased by 26% to 454c per share, from 617.1c per share previously. Headline earnings per share decreased by 25% to 474.3c per share, from 630.5c per share in the prior year. Coronation said these decreases reflect the fact that the prior period included a once-off benefit following the successful conclusion of its long-running tax dispute with SARS. The tax provision raised during the 2023 financial year had been reversed and included as income in that earlier period.
Pre-tax profit for the 2025 financial year rose by about 4% to just over R2.2bn. After paying more than R500 million in tax, attributable profit amounted to just under R1.68bn, which was 24% lower than the R2.21bn reported previously.
The prior year’s attributable profit had been inflated by a R561m tax recovery and associated interest arising from the resolution of the SARS matter. The dispute, involving R824m and dating back to 2012, related to whether profits from Coronation’s Irish business should be included in the taxable income of the South African holding company. The matter ultimately went to the Constitutional Court, where Coronation succeeded.
The board declared a final gross dividend of 254c per share, up from 228c in 2024. After dividend tax of 20%, the net amount is 203.2c per share for shareholders who are not exempt. Together with the interim dividend of 200c per share, the total gross dividend for the year amounted to 454c. This was lower than the prior year’s combined dividend of 566c, which had included a special dividend of 153c related to the SARS matter.
Challenging environment
Coronation said the group continued to face a challenging operating environment. The local savings industry remained under structural pressure in 2025 because consumers experienced continued financial strain and unemployment levels continued to rise.
The implementation of the two-pot retirement system added to the structural headwinds because more South Africans accessed their retirement funds for immediate needs.
Despite this, net outflows moderated to 5% of average AUM year on year, equivalent to about R35.25bn based on the group’s disclosed average AUM figure.
The group said it does not expect to see rapid improvements in industry conditions in the foreseeable future. It added that, as a major player in the South African savings market, it remained exposed to broader sector trends. Nevertheless, it stated that its clients benefited from strong market outperformance across most of its fund range despite the difficult backdrop.
Coronation also noted developments in its transformation profile. The group highlighted that a R1.5bn broad-based black economic empowerment transaction concluded last year increased black ownership to 52%, which enabled it to compete for mandates from institutions placing greater emphasis on transformation.
Assets managed by black portfolio managers increased to R275bn, representing 36% of total AUM. Within its South African workforce, 63% of employees are black, with about half being women, while 78% of its board comprises black members. The company said its chief executive, chief operating officer, and the heads of institutional, fixed interest, core equity, and absolute-return businesses are also from previously disadvantaged backgrounds.
Coronation said it would maintain disciplined investment in research, operations, talent development, and client service excellence to support its investment capabilities. The group added that it remained excited by opportunities available to long-term investors in local and global markets despite the continuing complexity of the operating environment.
