Ninety One AuM decline in year of 'significant headwinds'

Ninety One reported a decline in full-year assets under management on Wednesday, saying it had been "a year of significant headwinds".

In the 12 months to the end of March, assets under management fell 10% to £129.3bn, with net outflows of £10.6bn versus net inflows of £5bn a year earlier. The investment manager said the second half of the year drove the bulk of these outflows and more than half of the annual net outflows were driven by the asset allocation decisions of three clients, though all still remain clients.

Pre-tax profit was down 20% to £212.6m and adjusted operating profit declined 10% to £206.9m.

Following a record year in 2022, Ninety One said it was faced with a combination of higher inflation, the fastest rise in interest rates since it started the business, heightened geopolitical uncertainty, a liability-driven investing (LDI) crisis in the UK, significant bank failures in the developed world and energy shortages.

"All of this led to unprecedented risk-aversion among asset owners," said chief executive Hendrik du Toit. "This created significant headwinds for a firm like ours, which primarily offers ‘risk-on’, public-market strategies.

“Furthermore, and regrettably, we have to mention the deterioration of economic prospects in our original home market, South Africa, where we have a substantial business. We consider it our duty to call this out, but also to work constructively with government, civil society and other stakeholders to improve this situation. These circumstances have impacted our results, in particular, our net flows."