Coronation recently released its financial results for the year ended 30 September 2021. The company reported an increase of 17.1% in revenue to R4.26bn (FY2020: R3.64bn), and net profit was up by 22% to R1.71bn (FY2020: R1.39bn). Total assets under management (AUM) increased by 11% to R634bn (FY2020: R569bn). Gross management fees amounted to R4.26bn compared to R3.64bn in the previous year. The group reported diluted headline earnings per share of 487.9 cents (FY2020: 398.5 cents), up by 22% compared to the prior period.
Management expects the SA economy to remain under pressure, with formal employment growth meaningfully lagging the recovery in economic activity and the corrosive nature of structural headwinds, such as load-shedding and failing municipalities. The COVID-19-induced volatility created investment opportunities that do not present themselves often. As an active manager with a long-time horizon, Coronation took advantage of many of these opportunities.
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