Ninety One's assets under management rise 4% amid challenging market conditions

NINETY One’s share price was one of the biggest movers on the JSE Wednesday after it announced an increase in global assets under management by 4% to £130.8 billion (R3.15 trillion) in the year to March 31, buoyed by a stronger second half performance.

- EDWARD WEST

Full year net outflows for the JSEand London-listed group that was spun off Investec in 2020 came to £4.9bn, following first half net outflows of £5.3bn and net inflows of £0.4bn in the second half. The share price gained up to 6.7% on the JSE to R41.54 on Wednesday, bringing the year-to-date gain to over 13%. “Ninety One regained positive flow momentum in the second half.

Business conditions improved in the final quarter,’ founder and CEO Hendrik du Toit said at the release of the results. He added in a statement it was a “robust financial performance,” with an operating profit margin of 31.2%.

A final dividend of 6.8 pence was declared, bringing the full year payout to 12.2 pence a share. “Conditions remain challenging, but business momentum has improved,” said Du Toit. With a 32.6% shareholding, their staff were motivated and committed, he said. Average assets under management increased 4% to £129bn.