Investors pulled £5.3bn from asset manager Ninety One over the last six months, although a strong investment performance helped offset outflows.
In the group’s half-year results, the Anglo-South African financial firm revealed that while outflows had hit growth, overall assets under management had risen one per cent to £127.4bn in the six months to 30 September.
While its traditional equities and fixed income assets had fallen over the last six months, its South African fund platform was flourishing.
The platform’s assets under management grew 13 per cent to £12.5bn over the last six months, as equities and fixed income assets dropped by one and two per cent respectively.
Ninety One, which is dual listed on the London and Johannesburg stock exchanges, has seen its stock price fall almost 40 per cent over the last three years. The group split off from Investec in March 2020.
Since the breakup, the group has struggled to retain investors. Last year withdrawals totalled £9.4bn.
Adjusted operating profit over the last six months fell by nine per cent to £88.6m, while basic earnings per share dropped 12 per cent to 7.8 pence.
In June, the group was forced to cut its full-year dividend from 13.2p per share to 12.3p per share. It has now cut its interim dividend to 5.4p from 5.9p.
The group has struggled to drum up investor interest as demand for risk-on strategies, especially emerging markets, has “remained muted,” said Ninety One CEO Hendrik du Toit.
“This affected our ability to produce new business at historic rates. It is encouraging to note that we have experienced a significant improvement in inflows and business opportunities since September.”
Today, the asset manager also announced a deal with asset manager Sanlam, which will see Ninety One gaining preferred access to the firm’s distribution network and become Sanlam’s primary active investment partner.
“Subject to the necessary approvals, the agreement will bolster our market leadership position in South Africa,” added Toit. “This is a vote of confidence in the future of South Africa.”