Ninety One’s assets under management rise by 27 percent
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Ninety One was listed separately on the London Stock Exchange and the JSE after unbundling from Investec plc in March 2020 following a strategic review undertaken by the Investec group. Picture: Nhlanhla Phillips/African News Agency/ANA
DURBAN - NINETY One plc yesterday reported its first full-year results after unbundling from Investec in March last year and reported a record performance from its assets under management (AuM), which rose by 27 percent to £130.9 billion (R2.6 trillion) supported by positive market movements.
The group also benefited from the market recovery following the initial downward market impact at the start of the financial year as market and foreign exchange impact added £27.7bn in the year to end March compared to a loss of £14bn to AuM last year. This performance was offset by net outflows of £200 million compared with net inflows of £6bn reported last year.
Chief executive Hendrik du Toit paid tribute to their clients for their support during the challenging year caused by the Covid-19 outbreak even though it was disappointing not to achieve net inflows over the full reporting period.
“We are acutely aware that the communities we serve continue to be heavily impacted by the consequences of the pandemic. The pandemic has also accelerated change. The quest for sustainability has become central to our industry. We applaud this and we are ready to play our role in the pursuit for a net zero world. We believe that our purpose of investing for a better tomorrow is now more relevant than ever and we remain excited by the long-term growth opportunities for Ninety One,” Du Toit said.
Its profit after tax declined by 1 percent to £154.6m and adjusted operating profit increased by 9 percent to £206.2m while basic earnings per share (Eps) increased by 1 percent to 16.9 pence a share. The asset manager declared a final dividend of 6.7p a share, resulting in a full-year dividend of 12.6p after declaring an interim maiden dividend of 5.9p in November.
Du Toit said although the past year was the 30th year that they had been in business, it was also a year of firsts, including being the first year operating under the Ninety One brand. Ninety One was listed separately on the London Stock Exchange and the JSE after unbundling from Investec plc in March 2020 following a strategic review undertaken by the Investec group.
Ninety One said it ended the second half of the financial with a positive momentum despite the challenges provided by the pandemic.
“The year was characterised by a resurgence in investment performance at Ninety One due to the discipline and professionalism of our investment teams. Flow momentum has improved in the second half and we enter the new financial year with a strong pipeline,” he said. Looking ahead, Du Toit said although they were satisfied with the results, they were never content.
“There is a great deal of work to do in the coming years, because ours is an ambitious organisation with a long-term mindset. It is our intention to continue on our well-established organic growth path,” he said.
Ninety One shares closed 0.81 percent lower at R49 on the JSE yesterday.
sandile.mchunu@inl.co.za
BUSINESS REPORT