Asset management firm Ninety One experienced a torrid first half of the year after its clients pulled £3.2-billion (R65-billion) from its funds, the company’s interim results, which were released on Tuesday, show.
The company, which spun off from Investec in 2018 and listed separately on the JSE and London Stock Exchange, said its assets under management decreased by 8% in the six months to September, to £132.3-billion, representing net outflows of £3.2-billion.
Hendrik du Toit, CEO of Ninety One, said rising inflation and interest rates, increased geopolitical uncertainty and sharply lower financial asset prices contributed to challenging operating conditions.
“The high levels of client engagement could not counter the impact of this environment on our results,” said Du Toit.
“We saw net outflows in the first half, caused by lower levels of new business volumes and portfolio derisking by clients. We are anticipating that these tough conditions will persist for the foreseeable future.
“We remain committed to our long-term strategy and focusing all our attention on managing the investments of our clients to the standards they expect and delivering industry-leading service levels.”
He explained further: “In spite of the challenges, our people are motivated, experienced and adequately supported for the task at hand.”
The company’s six months to September results show that the main outflows were from the group’s equities offerings, with £2.2-billion withdrawn in the half year, compared with net inflows of £1.8-billion for the same period in 2021.
The group’s multi-asset vehicles also saw steep outflows of £825-million, which the company said was largely from UK adviser clients.
Du Toit said the asset manager is cautious about the near term.
“Our working assumption is that we will be operating in challenging markets for the foreseeable future. We continue to build our business for the long term, while applying appropriate cost discipline.
“Ninety One is a resilient business with a diversified offering and a long track record of operating in different market conditions.”
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