Top South Africa Fund Bets on Platinum as Power Cuts Hit Miners
- Coronation Fund cut Implats, Northam holdings, reduced Anglo
- Fund manager tips platinum to outperform rest of PGM basket
A platinum smelter site in Rustenburg, South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
A fund run by one of South Africa’s largest asset managers has altered its approach on platinum, seeing better returns from betting on the physical metal, while offloading shares in companies that produce it as they grapple with a power crisis.
Coronation Fund Managers Ltd., which oversees about 623 billion rand ($33 billion), has reduced the Impala Platinum Holdings Ltd. and Northam Platinum Holdings Ltd. shares in its resources fund this year, and cut its position in Anglo American Platinum Ltd. parent Anglo American Plc. The moves reflect strains on miners from a crippling electricity shortage in the world’s biggest producer of the metal.