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key insights
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Significant ownership in Coronation Fund Manager by retail investors indicates that they collectively have a greater say in management and business strategy
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A total of 12 investors hold a majority stake in the company, holding 51% of the ownership.
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Insiders own 10% of Coronation Fund Manager
To understand who actually controls Coronation Fund Managers Limited (JSE:CML), it’s important to understand the ownership structure of the business. The group that owns the most shares in the company (about 39% to be exact) is retail investors. In other words, this group faces the greatest upside potential (or downside risk).
Meanwhile, institutional investors own 26% of the company. Typically, as a company grows, institutions’ ownership increases. Conversely, insiders often decrease their ownership over time.
Let’s take a closer look to see what the different types of shareholders can tell us about Coronation Fund Manager.
Check out our latest analysis for Coronation Fund Manager.
What does institutional ownership tell us about crowned fund managers?
Financial institutions typically measure themselves against a benchmark when reporting to their own investors, so they often see increased enthusiasm for a stock once it’s included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
Coronation Fund Managers already has a registered share registry. In fact, they own a significant stake in the company. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Coronation Fund Manager (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have many shares in Coronation Fund Manager. According to our data, Public Investment Corporation Limited is the largest shareholder with 14% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 10% and 5.7% of the shares outstanding, respectively. Additionally, CEO Anton Pillay owns 1.4% of the company’s shares.
Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders. This means that no single shareholder has a majority interest in the ownership.
While researching institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. . Based on our information, there aren’t any analyst coverage of this stock, so it’s probably little known.
Coronation Fund Manager Insider Ownership
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.
Our most recent data indicates that insiders own a significant proportion of Coronation Fund Managers Limited. Insiders have her R1.1b interest in this R11b business. While this shows alignment with shareholders, it’s worth noting that the company is still very small. Some insiders may have founded this business. You can click here to see if insiders have been buying or selling.
Open to the public
With a 39% ownership interest, the general public, made up primarily of retail investors, has some degree of influence over Coronation Fund Manager. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
It appears that Private companies own 4.2% of the shares in Coronation Fund Managers. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, consider the ever-present fear of investment risk. We’ve identified 4 warning signs for you Working with and understanding your coronation fund managers (at least one of whom is a bit unpleasant) should be part of your investment process.
If you want to check out another company with potentially better financials, don’t miss this free A list of interesting companies backed by strong financial data.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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