Asset manager Ninety One has lowered its dividend after it experienced a fall in assets under management (AUM) and continued outflows amid “challenging” market conditions.
In its fiscal 2024 results, published this morning, the FTSE 250 firm reported its AUM dipped three per cent to end the year at £126bn. Meanwhile, the average AUM dropped £11bn to £123.9bn.
Ninety One posted net outflows of £9.4bn, although this was an improvement from £10.6bn last year. It said the primary driver of the outflows was equities, particularly from global strategies, followed by European and UK equities.
The firm’s pretax profit dipped two per cent to £216.8m. On an adjusted basis, operating profit came in eight per cent lower at £190.5m.
Ninety One cut its full-year dividend to 12.3p per share, including a proposed final dividend of 6.4p. The firm awarded shareholders a 13.2p dividend last year.
“Ninety One, and many other public-markets-centric active investment managers, faced headwinds over the reporting period,” said founder and chief executive Hendrik du Toit. “Despite these conditions, we delivered robust financial results.
“Looking ahead, we remain confident of the underlying strength of our business and the long-term relevance and quality of our proposition to clients,” the CEO added.
London’s asset managers have felt a sharp squeeze over the past 12 months, with surging inflation and the sluggish performance of the domestic markets dampening investors’ appetite.
The outgoing chief of FTSE 100 fund manager Schroders, Peter Harrison, described 2023 as “one of the most challenging years for global active asset managers in recent times”, and warned that geopolitical jitters and elections would continue to roil the markets this year.
Du Toit added: “The combination of focus on carefully chosen investment capabilities, distribution reach into large markets and our relentless quest to improve execution will realise the growth potential of Ninety One. Despite short-term challenges, our attention is firmly fixed on the compelling long-term opportunity.”