CORONATION FUND MANAGERS LIMITED REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS
for the year ended 30 September 2023
Assets under management
R602 billion
Diluted headline earnings per share
182.9 cents
Fund management earnings per share
165.2 cents
Final dividend per share
165.0 cents
CORONATION FUND MANAGERS ANNUAL RESULTS 2023
The year under review was a continuation of the difficult environment that the business has been operating in for the last few years, with anaemic market returns across domestic asset classes reflecting the very weak performance of the South African (SA) economy. Persistent headwinds have negatively impacted the SA savings pool, which has experienced net outflows for over a decade.
Against this unyielding backdrop, we celebrated our 30th birthday this year, which is a significant milestone for an asset management business. We remain a leading investment company and have delivered multi-decade service and investment outperformance for our clients, across all products and geographies.
Close to 95%1 of our portfolios have outperformed their benchmarks since inception, and the performance of all our key portfolios has been particularly encouraging over the last 12 months. Total assets under management (AUM) have increased by 5% year on year (y/y) at R602 billion (30 September 2022: R574 billion) and average AUM was flat y/y at R620 billion (30 September 2022: R621 billion).
Net outflows for the period amounted to 10% of average AUM. This can largely be attributed to both industry-wide outflows from the global emerging markets asset class, as demand declined after a decade of weak performance, and to the contracting SA savings pool. Management believes that outflows from the domestic savings industry will continue as formal employment remains muted, households come under increasing pressure, and investors continue to externalise their savings.
We believe that the relaxation of Regulation 28 is positive for the SA savings industry and investors, broadening the opportunity set and enhancing diversification. We are also confident that it will be positive for our clients and stakeholders, as Coronation is one of the few local firms with proven and established global capabilities across both emerging and developed markets. We therefore believe that we are well positioned for the internationalisation of the local savings industry as a result of over a decade of ongoing investment in the business.
In an industry that is under severe pressure, with many businesses forced to cut costs, we are determined and well-positioned to come strongly through this cycle and therefore continued to invest in our business. Total operating expenses for the 2023 financial year are up 8% y/y (excluding the impact of the tax matter2). Areas of increased investment include client service systems, strengthening our local and global investment capabilities, optimising information systems, data management and cybersecurity, as well as ensuring compliance with a demanding regulatory environment.
Fund management earnings per share (FMEPS) are down 4% when adjusted for the impact of the tax matter (down 57% when including the impact of the tax matter2). We are encouraged that the Constitutional Court has agreed to hear our case and anticipate that any outcome will be in the second half of the 2024 calendar year. This dispute has no material impact on our long-term sustainability, and we remain a well-capitalised and successful business.2
TRANSFORMATION
We operate in a skills-scarce environment, with increasing levels of emigration, and in an industry where the competition for talent is fierce. With this in mind, we remain focused on fostering our culture that attracts and retains exceptional people to ensure that we consistently deliver on our client promise of long-term outperformance.
A sustainable industry is only as strong as the talent it attracts, and we invest significantly in the development of succession planning. We do this through awarding full bursaries to students pursuing careers in finance, and offering internships and graduate development programmes for young professionals, many of whom become permanent employees.
We are a diverse and inclusive company, and this year we are proud to have been awarded first place in the 11th Annual Accenture Gender Mainstreaming Awards in the category of Gender-reporting by JSE-listed Companies for the second consecutive year and first place in the UN-established Women's Empowerment Principles Awards for Transparency and Reporting. We also ranked first for diversity in both the European Pensions Awards and the Irish Pensions Awards.
We are a Level 1 contributor to B-BBEE3, 31% black owned, and R254 billion, representing 42% of total AUM, is managed by experienced black investment professionals. At an employee level, 64% of our employees are black and 51% are women. Key leadership positions continue to be held by black leaders. These include our CEO, CFO, COO, Head of Institutional Business, Head of Fixed Income, Head of Core Equity and Head of Absolute Return.
Extending beyond our business, we have made significant inroads in transforming our industry. Over the years we have established four black-owned financial services companies; provided financial and training support to black brokerages, independent financial advisors and analysts via partnerships with industry participants; and supported black-owned businesses through our Preferential Procurement Policy.
STEWARDSHIP
We have been active stewards of our clients' capital for 30 years and, since the outset, we have taken a long-term view, with the goal of delivering long-term outperformance to the benefit of all stakeholders. As such, while ESG and sustainability have grown more complex over the last decade,
- Asset weighted for funds with a 10-year + history
- Refer to Note 7 of the appended Financial Statements
- Per the FSC Scorecard
1TRUST IS EARNED™
we have always considered these factors and related externalities in our investment and business processes. From an investment perspective, our ESG research and stewardship activities help us to identify and mitigate risks, ensure good governance and understand the drivers of long-term value. Our fifth annual Stewardship Report details our active ownership activities and sets out our stance on some of the key issues facing investment managers and their clients. We continue to encourage investee companies to disclose their carbon emissions profiles in line with the Taskforce for Climate- Related Financial Disclosure framework, and to ensure that their climate-action plans are clear, credible and appropriate to their business operations.
Our commitment to leading in our stewardship activities is reflected in Coronation earning first place in the 2022 ICGN Global Stewardship Disclosure Awards4 for asset managers responsible for AUM less than £60 billion.
DIVIDEND
As per our policy, we endeavour to distribute a minimum of 75% of after-tax cash profit. After fully providing for the tax matter in our interim results and assessing any projected future cash requirements, a final gross dividend of 165.0 cents per share has been declared for the financial year ended 30 September 2023 from income reserves, resulting in a net dividend of 132.0 cents per share for shareholders subject to Dividends Tax. In compliance with the Listings Requirements of the JSE Ltd, the following dates are applicable:
Declaration date: Tuesday, 21 November 2023
Last day to trade cum dividend: Tuesday, 5 December 2023
Trading ex-dividend commences: Wednesday, 6 December 2023
Record date: Friday, 8 December 2023
Payment date: Monday, 11 December 2023
Share certificates may not be dematerialised or rematerialised between Wednesday, 6 December 2023 and Friday, 8 December 2023, both dates inclusive. In terms of Dividends Tax, the following additional information is disclosed: the local Dividends Tax rate is 20%. The number of ordinary shares in issue at the date of this declaration is 349 799 102. Coronation's tax reference number is 9 675 107 719.
PROSPECTS
The environment remains volatile and complex. It is in conditions like these that high-quality teams and proven processes such as ours deliver the most value. We believe that cheap valuations will result in many years of excellent returns for our clients, and will be very positive for the business and its stakeholders.
We will continue to play our role as an active corporate citizen, and will collaborate with peers, industry bodies, our CSI partners and government, to find ways in which to boost South Africa's economic prosperity for the benefit of all citizens.
Coronation is a leading investment firm that has been managing significant assets on behalf of SA individuals as well as local and international institutional investors for 30 years. We have operated successfully through numerous cycles and remain a resilient, well-capitalised and sustainable business, through ongoing investment in our people, our systems and client service.
EXTERNAL AUDIT REVIEW
The external auditors, KPMG Inc., reviewed the condensed consolidated statement of financial position of Coronation Fund Managers Ltd as at 30 September 2023, and the related condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows, earnings per share and condensed consolidated segment report for the period then ended and explanatory notes. The review has been conducted in accordance with the International Standard on Review Engagements 2410 (ISRE 2410). Copies of the unmodified review report of KPMG Inc. are available for inspection at the registered office of the Company together with the condensed consolidated financial statements identified in the auditor's review report.
The auditor's review report does not necessarily report on all of the information contained in this financial results announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement, they should obtain a copy of the auditor's review report together with the accompanying financial information from the issuer's registered office. Any forward-looking information contained in this announcement has not been reviewed or reported on by the Company's external auditors.
Alexandra Watson | Anton Pillay | Mary-Anne Musekiwa |
Chairman | Chief Executive Officer | Chief Financial Officer |
Cape Town | ||
21 November 2023 |
4 Awarded on a biennial basis
REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS 2023 | 2 |
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
REVIEWED | AUDITED | |
30 SEPT | 30 SEPT | |
2023 | 2022 | % |
R MILLION | R MILLION | CHANGE |
Fund management activities
Revenue (note 2)
Other income/(losses)
Total operating expenses
Results from operating activities
Finance and dividend income
Finance expense
Profit from fund management
Share of profit of equity-accounted investee
Sundry gains/(losses)
Income/(losses) attributable to policyholder linked assets and investment partnerships
Net fair value gains on policyholder and investment partnership financial instruments
Administration expenses borne by policyholders and investors in investment partnerships
Profit before income tax
Income tax expense
Taxation on shareholder profits (note 9)
Taxation on policyholder investment contracts
Profit for the year
Other comprehensive (losses)/gains
Foreign currency translation differences for foreign operations
Total comprehensive income for the year
Profit attributable to:
- equity holders of the company
Profit for the year
Total comprehensive income attributable to - equity holders of the company
Total comprehensive income for the year
Earnings per share (cents)
- basic
- diluted
Headline earnings per share (cents)
- basic
- diluted
3 647 | 3 738 | (2%) |
76(13)
(2 154) | (1 862) | 16% |
1 569 | 1 863 | (16%) |
5016
- (60)
1 561 | 1 819 | (14%) |
55
110 (129)
13(3)
118 122
- (125)
1 689 | 1 692 | 0% |
(1 049) | (411) | |
(1 036) | (414) |
- 3
640 | 1 281 | (50%) |
- 30
- 30
634 1 311
640 | 1 281 | (50%) |
640 1 281
634 | 1 311 | (52%) |
634 1 311
182.9 | 366.3 | (50%) |
182.9 | 366.3 | (50%) |
182.9 | 366.3 | (50%) |
182.9 | 366.3 | (50%) |
3TRUST IS EARNED™
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
REVIEWED | AUDITED | |
30 SEPT | 30 SEPT | |
2023 | 2022 | |
R MILLION | R MILLION | |
Assets | ||
Intangible assets | 1 088 | 1 088 |
Equipment | 26 | 15 |
Right-of-use assets | 58 | 74 |
Investment in equity accounted investees | 41 | 41 |
Deferred tax assets | 175 | 176 |
Investments backing policyholder funds and investments held through investment partnerships | 61 483 | 54 718 |
Investment securities | 639 | 1 341 |
Taxation receivable | - | 62 |
Trade and other receivables | 686 | 684 |
Cash and cash equivalents | 1 141 | 656 |
Total assets | 65 337 | 58 855 |
Liabilities | ||
Long term borrowings (note 4) | 535 | 481 |
Long term other payables | 29 | 6 |
Lease liabilities | 88 | 106 |
Deferred tax liabilities | 41 | 6 |
Policyholder investment contract liabilities and liabilities to holders of interests in investment | ||
partnerships | 61 469 | 54 712 |
External investors in consolidated funds (note 6) | - | 648 |
Taxation payable (note 7) | 433 | - |
Trade and other payables | 669 | 857 |
Total liabilities | 63 264 | 56 816 |
Net assets | 2 073 | 2 039 |
Equity | ||
Share capital and premium | 256 | 256 |
Retained Earnings | 1 668 | 1 630 |
Reserves | 149 | 153 |
Total equity | 2 073 | 2 039 |
REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS 2023 | 4 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
SHARE | FOREIGN | SHARE- | |||
CAPITAL | CURRENCY | BASED | |||
AND | TRANSLATION | RETAINED | PAYMENT | TOTAL | |
PREMIUM | RESERVE | EARNINGS | RESERVE | EQUITY | |
R MILLION | R MILLION | R MILLION | R MILLION | R MILLION | |
Balance at 30 September 2021 (audited) | 256 | 111 | 1 888 | 11 | 2 266 |
Total comprehensive income for the year | |||||
Profit for the year | 1 281 | 1 281 | |||
Other comprehensive gains | |||||
Currency translation differences | 30 | 30 | |||
Total comprehensive income for the year | 30 | 1 281 | 1 311 | ||
Transactions with owners recorded directly to equity | |||||
Share-based payments | 1 | 1 | |||
Dividends paid | (1 539) | (1 539) | |||
Total transactions with owners | (1 539) | 1 | (1 538) | ||
Balance at 30 September 2022 (audited) | 256 | 141 | 1 630 | 12 | 2 039 |
Total comprehensive income for the year | |||||
Profit for the year | 640 | 640 | |||
Other comprehensive losses | |||||
Currency translation differences | (6) | (6) | |||
Total comprehensive income for the year | (6) | 640 | 634 | ||
Transactions with owners recorded directly to equity | |||||
Share-based payments | 2 | 2 | |||
Dividends paid | (602) | (602) | |||
Total transactions with owners | (602) | 2 | (600) | ||
Balance at 30 September 2023 (reviewed) | 256 | 135 | 1 668 | 14 | 2 073 |
5TRUST IS EARNED™
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
REVIEWED | AUDITED |
30 SEPT | 30 SEPT |
2023 | 2022 |
R MILLION | R MILLION |
Cash flows from operating activities
Profit from fund management
Non cash and other adjustments
Operating profit before changes in working capital
Working capital changes
Decrease in trade and other receivables Decrease in trade and other payables
Cash flows utilised in policyholders and investment partnership activities*
Cash generated from operations
Interest on lease liability paid
Interest paid
Income tax paid
Net cash generated from operating activities
Cash flows from investing activities
1 561 | 1 819 |
2 119
1 563 | 1 938 |
- (170)
- (15)
- (155)
- (1 081)
1 367 | 687 |
- (12)
- (33)
-
(406)
812 236
Finance and dividend income | 43 | 16 |
Acquisition of equipment | (25) | (6) |
Net disposal of investment securities | 210 | 258 |
Net cash from investing activities | 228 | 268 |
Cash flows from financing activities | ||
Dividends paid | (602) | (1 539) |
Proceeds from long term borrowings | 46 | - |
Lease liability paid | (14) | (20) |
Net cash utilised in financing activities | (570) | (1 559) |
Increase/(decrease) in cash and cash equivalents | 470 | (1 055) |
Net increase in cash and cash equivalents - shareholders | 491 | 26 |
Net decrease in cash and cash equivalents - policyholders and investment partnerships* | (21) | (1 081) |
Cash and cash equivalents at beginning of the year | 6 460 | 7 485 |
Cash and cash equivalents at beginning of year - shareholders | 656 | 600 |
Cash and cash equivalents at beginning of year - policyholders and investment partnerships* | 5 804 | 6 885 |
Effect of exchange rate fluctuations on cash held | (6) | 30 |
Cash and cash equivalents at end of the year | 6 924 | 6 460 |
Cash and cash equivalents at end of year - shareholders | 1 141 | 656 |
Cash and cash equivalents at end of year - policyholders and investment partnerships* | 5 783 | 5 804 |
- The above cash flows include the policyholder and investment partnership activities. These cash flows represent net contributions and withdrawals by policyholders and investment partnerships and the related investing activities. Cash and cash equivalents of policyholders and investment partnerships are not available for use by the shareholders of the Group.
REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS 2023 | 6 |
EARNINGS PER SHARE
FULL YEAR | ||
REVIEWED | AUDITED | |
30 SEPT | 30 SEPT | |
2023 | 2022 | |
R MILLION | R MILLION | |
Earnings attributable to shareholders | 640 | 1 281 |
Earnings attributable to ordinary shareholders | 640 | 1 281 |
Headline earnings attributable to ordinary shareholders | 640 | 1 281 |
Earnings per share (cents) | 366.3 | |
- basic | 182.9 | |
- diluted | 182.9 | 366.3 |
Note to the condensed consolidated statement of comprehensive income | ||
Headline earnings per share (cents) | ||
- basic | 182.9 | 366.3 |
- diluted | 182.9 | 366.3 |
Dividend per share (cents) | ||
- interim | 214.0 | |
- final | 172.0 |
CONDENSED CONSOLIDATED SEGMENT REPORT
AFRICA | |
REVIEWED | AUDITED |
30 SEPT | 30 SEPT |
2023 | 2022 |
R MILLION | R MILLION |
INTERNATIONAL
REVIEWED | AUDITED |
30 SEPT | 30 SEPT |
2023 | 2022 |
R MILLION | R MILLION |
GROUP | |
REVIEWED | AUDITED |
30 SEPT | 30 SEPT |
2023 | 2022 |
R MILLION | R MILLION |
Segment external revenue | 2 568 | 2 625 | 1 079 | 1 113 | 3 647 | 3 738 | |
Segment operating expenses | (1 559) | (1 365) | (595) | (497) | (2 154) | (1 862) | |
Segment profit | 1 009 | 1 260 | 484 | 616 | 1 493 | 1 876 | |
Net finance and other income/(expense) | 129 | (24) | (61) | (33) | 68 | (57) | |
Profit from fund management | 1 138 | 1 236 | 423 | 583 | 1 561 | 1 819 | |
Share of income of equity-accounted investee | 5 | - | 5 | 5 | |||
Sundry gains/(losses) | 110 | (129) | |||||
Income/(losses) attributable to policyholder linked | |||||||
assets and investment partnerships | 13 | (3) | |||||
Profit before income tax | 1 689 | 1 692 | |||||
Segment assets | 1 427 | 1 635 | 1 124 | 1 197 | 2 551 | 2 832 | |
Investments* | 62 786 | 56 023 | |||||
Total assets | 65 337 | 58 855 | |||||
Segment liabilities | 985 | 1 100 | 770 | 350 | 1 755 | 1 450 | |
Investor liabilities** | 61 509 | 55 366 | |||||
Total liabilities | 63 264 | 56 816 |
Total tax on shareholder profits amounts to R1 036 million (30 September 2022: R414 million) which has largely arisen from the international
operations. Tax on policyholder investment contracts amounts to R13 million (30 September 2022: tax gain of R3 million).
- Investments are attributable to investments backing policyholder funds and investments held through investment partnerships, consolidated funds and other assets.
- Investor liabilities include policyholder investment contract liabilities and liabilities to holders of interest in investment partnerships and external investors in consolidated funds.
7TRUST IS EARNED™
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The condensed consolidated financial statements have been prepared in accordance with the framework concepts and the measurement and recognition requirements of the International Financial Reporting Standards (IFRS); the International Accounting Standard 34 Interim Financial Reporting; the Listings Requirements of the JSE Ltd; the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, as well as the South African Companies Act, No. 71 of 2008 (as amended). The condensed consolidated financial statements do not include all of the information required for a complete set of IFRS annual financial statements.
These condensed consolidated financial statements have been prepared in accordance with the historical cost basis except for certain financial instruments which are stated at fair value. The condensed consolidated financial statements are presented in South African Rand (R), rounded to the nearest million.
The preparation of the condensed consolidated financial statements, in conformity with IFRS, requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key areas in which judgement and estimation uncertainty is applied include:
Assessing the impact of the Supreme Court of Appeal (SCA) judgement in favour of SARS, in relation to the SARS vs Coronation Investment Management SA (Pty) Ltd (CIMSA) tax matter, management has determined that the SCA judgement is an obligating event. The total obligation payable by the Group to SARS is management's best estimate as at 30 September 2023.
IFRS do not specifically address the accounting treatment for interest and penalties related to income taxes. The IFRS Interpretations Committee (IFRIC) discussed the accounting for interest and penalties and concluded that a reporting entity should apply and disclose its judgement in assessing whether interest or penalties are themselves income tax.
An entity must assess the facts of the particular matter to determine whether the entity has made a financing decision (intentional or due to an oversight) or whether a significant tax uncertainty exists and as such the total obligation is as a result of the tax uncertainty.
Where the entity has a dispute with the tax authorities and there is significant uncertainty regarding the amount of income tax to be paid, further consideration is required.
There has been a significant uncertainty within the Group regarding taxes due as a result of this dispute, due to a difference of opinion on tax treatment (interpretation of the provisions of Section 9D of the Income Tax Act no. 58 of 1962) between CIMSA and SARS. There was no delay in the payment of any taxes due (as calculated in terms of guidance provided by expert advice and CIMSA's interpretation of the law) as a result of a conscious decision to delay payment nor any administrative oversight. Therefore, any interest charged due to this significant uncertainty in tax treatment is not a financing expense and should be accounted for as an operating expense. In addition, should the Group be liable for any penalties these will be accounted for as an operating expense as well.
The valuation of unlisted investments is a notable area of judgement applied in the preparation of these condensed consolidated financial statements. It is the opinion of the directors that fair value approximates carrying amount;
Valuation of the share-based payment expense where inputs are based on observable market inputs, adjusted for factors that specifically apply to the transaction and recognise market volatility; and
Assessing whether the Group controls an investee by assessing the power over the investee, exposure or rights, to variable returns from its involvement with its investee and the ability to use its power over the investee to affect the amount of the Group's returns.
The accounting policies applied in the presentation of the condensed consolidated financial statements are in terms of IFRS and are consistent with those presented in the 2022 annual financial statements.
These reviewed results have been prepared under the supervision of N Salie CA(SA).
2 REVENUE FROM CONTRACTS WITH CUSTOMERS
REVIEWED | AUDITED | |
30 SEPT | 30 SEPT | |
2023 | 2022 | |
R MILLION | R MILLION | |
Management fees | 3 353 | 3 277 |
Performance fees | 294 | 461 |
3 647 | 3 738 |
Revenue from contracts with customers comprises fees earned in respect of fund management activities.
Refer to the condensed consolidated segment report for disaggregation of revenue based on the geographical split of revenue earned.
All revenue from contracts with customers is earned over time.
REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS 2023 | 8 |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
-
RELATED PARTY TRANSACTIONS
Related party transactions for the current year are similar to those disclosed in the Group's annual financial statements for the year ended 30 September 2022. No new significant related party transactions arose during the year. - LONG-TERMAND SHORT-TERM BORROWINGS
The cumulative redeemable preference shares with fixed rate dividends payable quarterly has a capital payment of R300 million (30 September 2022: R300 million) due on 1 April 2025.
On 31 August 2023 a new tranche of cumulative redeemable preference shares to the amount of R46 million were issued by CIMSA, with dividends linked to JIBAR payable on a quarterly basis and capital repayment due on 31 August 2027.
Additional long-term borrowings at year-end reflect a term loan facility of R189 million (2022: R181 million) with the Standard Bank of South Africa Limited (Standard Bank) entered into on 18 October 2019, amounting to US$10 million, for the purposes of funding for a Common Contractual Fund (CCF) (refer to note 6) issued by Coronation Global Fund Managers (Ireland) Limited.
The loan facility is at a fixed rate and capital repayment is due on 17 October 2024. - FAIR VALUE DISCLOSURE
The table below analyses financial instruments carried at fair value. The different levels have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. The fair value of policyholder and investment partnership liabilities that are included in Level 1 of the hierarchy are measured with reference to the quoted prices in an active market of the investments underlying the liabilities.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly (i.e. as closing prices) or indirectly (i.e. derived from closing prices). The majority of Level 2 investments are deposits held with financial institutions. The fair values of these deposits are determined using a discounted cash flow valuation methodology based on market rates, reflecting the time value of money and counterparty credit risk. The fair values of the policyholder and investment partnership liabilities included in Level 2 are measured with reference to the fair values of the mentioned assets underlying these liabilities.
Cash and cash equivalent balances along with their related liabilities of 2 462 million (30 September 2022: R2 335 million) have been excluded from the below table in current and prior years respectively.
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
R MILLION | R MILLION | R MILLION | R MILLION |
September 2023 (Reviewed)
Investments backing policyholder funds and investments held through investment partnerships
Investment securities
Policyholder, external investors and investment partnership liabilities
September 2022 (Audited)
Investments backing policyholder funds and investments held through investment partnerships
Investment securities
Policyholder, external investors and investment partnership liabilities
54 012 | 5 009 | - | 59 021 |
629 | - | 10 | 639 |
54 641 | 5 009 | 10 | 59 660 |
- | 59 007 | - | 59 007 |
47 750 | 4 663 | - | 52 383 |
1 331 | - | 10 | 1 341 |
49 081 | 4 663 | 10 | 53 724 |
- | 53 025 | - | 53 025 |
Fair values for all other financial assets and liabilities have not been presented because they are not carried at fair value and their carrying amounts approximate fair values.
9TRUST IS EARNED™
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Coronation Fund Managers Limited published this content on 21 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 05:38:14 UTC.
