LONDON - Ninety One, an asset manager listed on both the London Stock Exchange and the JSE, reported a significant decrease in Assets Under Management (AUM) as it grapples with investor caution and turbulent market conditions. The company witnessed a £6.5 billion decline in AUM, alongside net outflows of £4.3 billion, reflecting broader economic challenges that have impacted the financial sector.
The firm's half-year results, which concluded on September 30, 2023, revealed a 5% fall in basic earnings per share to 8.9 pence and a 9% decrease in adjusted earnings per share to 8.2 pence. As a result, Ninety One announced an interim dividend of 5.9 pence per share, payable on December 22, 2023, marking a 9% reduction from its comparative half-year.
Hendrik du Toit, CEO of Ninety One, addressed these outcomes during a session with The Money Show today, linking the downturn to heightened global interest rates and geopolitical uncertainty. These factors have notably dampened investor interest in emerging markets and public equities. Despite these headwinds, the company remains focused on maintaining cost discipline and bolstering client service to navigate the current market turbulence.
Du Toit also shared insights into inflation's future trajectory and its impact on the business. He anticipates that the challenging conditions that led to a profit drop and substantial net outflows will persist throughout the remainder of the financial year.
In response to the announcement of these results earlier today, shares of Ninety One on the JSE experienced an uptick, rising over 1%. The group is determined to stay competitive and uphold a long-term growth mindset as it moves forward in this uncertain economic landscape.
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