Ninety One's full-year profits up 11% to £198.5m but sees AUM dip
Demerged from Investec in March
Pre-tax profits at Ninety One were up 11% for the year to 31 March, standing at £198.5m, however, assets under management (AUM) dipped 7% to £103.4m, its annual results show.
Ninety One, formerly Investec Asset Management, reported net inflows of £6bn which it said was in line with the previous year. Basic earnings per share increased 11% and adjusted earnings per share increased 10%.
The annual results said the business had made "meaningful progress" in positioning the firm as an independent investment manager with significant employee ownership.
Employees now own more than 21% of the business, which the results said "leave [it] better aligned with clients and shareholders".
It demerged from Investec, listed and rebranded in March days before the coronavirus lockdown. It added short-term investment performance was "negatively affected by the extreme market correction in March 2020".
Ninety One management set to increase stake after Investec demerger
It added: "In response to the Covid-19 pandemic, we prioritised the wellbeing of our people and did not furlough or make redundant any of our staff. We contributed £2.9m to relief efforts."
Founder and CEO Hendrik du Toit said: "Last year was a momentous year for Ninety One. We ended our 29th year in business with record earnings, a quality client base from across the world, highly motivated people and an experienced leadership team, but were challenged by the consequences of the Covid-19 pandemic.
"During the last month of the 2020 financial year, we successfully demerged from Investec, listed on the London and Johannesburg Stock Exchanges, and rebranded as Ninety One.
"Significantly, all staff are now shareholders and the people who work in the firm collectively own more than 21% of the equity of Ninety One. This was a pivotal period in the evolution of our business."
Ninety One's Stopford and Borbora-Sheen to take on £1.1bn Cautious Managed fund
He added: "These developments took place in the face of extreme market volatility and weakened economic prospects, which we expect to endure for some time.
"The resilience of our people and technology enabled us to provide all our clients with uninterrupted service and intensified engagement.
"We successfully facilitated remote working for our staff to ensure their wellbeing just days after the demerger and listing. Ninety One is committed to doing its best for all stakeholders in the ongoing battle against this pandemic and its devastating economic consequences."
More on Industry
Most read
