Well in January when they increased there holding to 20% percent their holding was worth R3 Billion now its worth R150 mil. 8 months later. If they got it this wrong, how badly are they getting other things wrong? Just a thought..
Its a puzzling question.... Bouwer, of course they are getting other things wrong!!! - if they only get 3 out of 5 decisions right they are in the top percentiles of managers - which is where you find them. If you understand their investment philosophy then there should be no concerns ...
Ok well, I actually would like to add them to a long term holding, they are excellent at what they do. Was just referring to the current market conditions. And getting it wrong is one thing, wrong by 10 - 20%. Losing 95% value in 8 months?
I got this email from Coronation: As you may be aware, the recent trading update released by African Bank has caused a collapse in the share price this week. In this regard, we want to confirm to you that the exposure to African Bank is not material in any of our client funds. Where held, equity exposure is very small and we have virtually no exposure to African Bank debt or money market instruments. Our flagship unit trust funds have the following total exposure (debt + equity) to African Bank: Coronation Money Market Fund: 0% Coronation Strategic Income Fund: 0% Coronation Balanced Defensive Fund: 0% Coronation Capital Plus Fund: 0% Coronation Balanced Plus Fund: 0.37% Coronation Top 20 Fund: 0.62% *% of total portfolio held in African Bank, as at close on 6 August 2014
Surely its the repuational risk of cml that is at question.I think they have had a bull market in their favour for too long .Again after having worked in the industry ,no qualification can make you a better money manager or give you common sense as to me this is a common sense failure by CML
firstly - Werner is right, so what if they lost R1bn (but I doubt they did - check Moneyweb's article). Their exposure, if anything was probably about R100m. Drop in the ocean. Second, as a Coronation shareholder - bear in mind that it is not Coronations money that is in Abil, it is the fund they manage's money. I.e. you the unit trust holder. As far as I know, CML doesn't have any holding company structure where they take a direct stake in equity. They use contributed money. So all that a shareholder will lose, is the associated fees that they no longer get from that specific asset. - I could be wrong though