Dis­ap­point­ing per­for­mance

Finweek English Edition - - Marketplace Simon Says -

An­chor Cap­i­tal re­sults were as bad as the trad­ing up­date sug­gested. HEPS was off al­most 40% at 22c for the six months. At the be­gin­ning of last year I had ex­pected the group to reach HEPS of maybe 100c for this fi­nan­cial year. Now it will need to sweat to get half of that. The rea­sons in­clude lack of fund per­for­mance in its funds; that means less per­for­mance fees hurt­ing prof­its as costs stay largely flat. I had been very bullish on this stock but it has dis­ap­pointed and needs to start de­liv­er­ing on re­sults. One easy way to see what fu­ture re­sults could be like is to watch An­chor’s man­aged funds. Are they grow­ing in size, and im­por­tantly, are they beat­ing the bench­marks and hence earn­ing per­for­mance fees? If not, stay away for now. My pre­ferred pick in this space would be Coro­na­tion with its very strong div­i­dend yield.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.