Doesn’t make for exciting reading
Coronation results saw assets under management down 1.6% and diluted HEPS off 13.3%. As I usually do after checking the top-line numbers, I look for the outlook or, in the case of Coronation, the prospects section of the results. This is important for two reasons. First, because it gives an indication of what management is expecting, but I also read previous results prospects to see how much management got it right. In the case of Coronation, the prospects section is generally very light, although back in March 2015 it was cautioning that “earnings stream of a fund manager is cyclical and volatile”. However, this section of the results has been getting weaker and weaker over time and in the last set of results the prospects tell us nothing; it looks like it was written by a PR intern and is totally useless. So, I stopped reading and moved on.