Ninety One, a London-listed asset manager, has announced a decrease in pretax profit and higher outflows for the six months ended September 30. Despite facing a challenging macroeconomic environment, the company remains focused on market leadership and long-term growth.
During the reporting period, Ninety One’s pretax profit fell to £104.0 million, compared to £110.6 million in the same period last year. Additionally, assets under management decreased from £132.3 billion to £123.1 billion, and revenue saw a decline from £384.3 million to £350.2 million.
Ninety One attributed the decline in performance to various factors, including increased interest rates and geopolitical uncertainty. These conditions, coupled with investor caution, have dampened appetite for emerging markets and public equities. The company expects these challenges to persist throughout fiscal year 2024.
Despite the headwinds faced by the active investment management industry, Ninety One remains optimistic about regaining its growth momentum. Founder and Chief Executive, Hendrik du Toit, expressed confidence in the company’s ability to navigate these cyclical challenges. In order to achieve market leadership, Ninety One will apply strict cost discipline and maintain a long-term growth perspective.
Outflows and Dividends
Net outflows for the reporting period totaled £4.3 billion, an increase from the £3.2 billion outflows reported a year earlier. In light of current circumstances, Ninety One’s board declared an interim dividend of 5.9 pence per share, down from 6.5 pence.