CORO­NA­TION F U ND MAN­AGERS

Finweek English Edition - - INVESTMENT -

BUY

Stock­bro­ker­age Imara SP Reid has a “Hold” rec­om­men­da­tion on the as­set man­age­ment f irm fol­low­ing the re­lease of f inan­cial re­sults for the si x months ended 31 March 2013. While t here has been much de­bate around whether Coro­na­tion could con­tinue its phe­nom­e­nal mar­ket run, Imara an­a­lyst Steve Mein­t­jes notes: “Skep­tics who held their breath over the past 10 years for the ‘sta­tis­ti­cally in­evitable’ pe­riod of marked un­der­per­for­mance would no longer be with us. Nev­er­the­less the risk re­mains but it is fair to point out that, just as the mar­ket value of funds un­der man­age­ment grew less than the gen­eral move­ment in eq­ui­ties on the JSE, so would the de­cline be less. It would there­fore take a mar­ket move­ment along the lines of 2008 for FUM to be se­verely im­pacted. In­vestors who be­lieve, as we do, that global eq­uity mar­kets are un­der­go­ing a sea­sonal cor­rec­tion af­ter a rapid surge, with the prospects of sub­se­quent re­cov­ery by year-end, could there­fore hold.”

HOLD

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