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Johannesburg - Coronation Fund Managers, a South African money manager, said investment returns aren’t sustainable after equity-market gains helped boost first-half profit by 69 percent.

“Coronation is a cyclical business and we envisage a difficult investment environment with increased market volatility,” the Cape Town-based company said in a statement today.

“We caution investors to re-set their expectations for the years ahead.”

Net income rose to 965 million rand in the six months through March, from 572 million rand a year earlier, the company said.

Earnings per share excluding one-time items also rose 69 percent to 2.75 rand.

Coronation shares fell 4 percent to 98.81 rand as of 10:53 a.m. in Johannesburg trading.

Coronation reported net inflows of 14.7 billion rand during the period, with assets under management increasing 11 percent to 547 billion rand.

The FTSE/JSE Africa All Share Index rose 8.5 percent in the period under review and reached a record 49,885.8 points on May 15. - Bloomberg News