Ninety One: Asset manager hopeful of ending years of outflows
Ninety One was hopeful of ending years of fund outflows after the FTSE 250 firm recorded a positive second-half performance.
The asset manager, which is based in London and Johannesburg, has recorded only a single year of net inflows since its 2020 flotation after clients pulled a combined £25bn from the firm.
But on Wednesday, Ninety One said it had seen £400m of net inflows in the six months to the end of March 2025, a marked turnaround from the £5.3bn net outflows in the previous six-month period and a near-halving of full-year net outflows compared to the previous year.
“We enter the new financial year with cautious optimism. Inflation has moderated and interest rates have eased following a prolonged period of monetary tightening,” CEO Hendrik du Toit and Chair Gareth Penny said in a joint statement.
“As a result, market participation is broadening, risk appetite is normalising, and conversations with clients are shifting toward longer-term return opportunities and reallocation of capital.
“The uncertainty created by “deal-driven” US trade policy will likely result in further diversification of investment portfolios.”
Move away from US mega-caps
The second half net inflows were led by Ninety One’s “alternatives” offering, which focuses on private credit, as well as investment back into equities. There were net inflows from Ninety One’s clients in Asia Pacific and Africa, while outflows in the UK and the Americas persisted.
“Equity markets began to broaden from the leadership of a narrow group of US mega-cap stocks. Dispersion increased across sectors and geographies. Bond markets stabilised as yields peaked,” Penny and du Toit said.
“This resulted in a more constructive setting for active management, better aligned with Ninety One’s high-conviction approach and global capabilities.”
Ninety One upped its final dividend to 6.8p, up from 6.4p last year, though full-year dividends remain down slightly on 2024. The firm’s total assets under management was up four per cent to £130.8bn, while management fees rose two per cent to £567.1m.
Ninety One shares rose 4.8 per cent to 170p in the opening minutes of trade in London. The stock is up 17 per cent since the start of the year.
In November, 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 becoming Sanlam’s primary active investment partner.