Ninety One outflows surge to £4.3bn as assets slump 5%

investmentweek.co.uk:

Hendrik du Toit (pictured), founder and CEO of Ninety One

Assets under management for the firm have also continued to slide, decreasing by 5% over the six months to £123.1bn, according to its interim results published today (15 November).

Ninety One outflows reach £10.6bn in year of 'significant headwinds'

The firm has seen consistent outflows in recent months. Earlier this year, it revealed it had shed £10.6bn in outflows for the 12 months to March 2023.

Profits before tax also saw a decline, dropping 6% from a year ago to £104m, whlie adjusted operating profit fell 9% to £97.9m.

Hendrik du Toit, founder and CEO of Ninety One, credited «continued investor caution» to rising interest rates and increased geopolitical uncertainty, with «narrow» sectoral and geographic performance dampening appetite for emerging markets and public equities. 

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«Our response is to intensify our efforts in areas in which we can compete for market leadership, delivering best-in-class service to our clients and applying strict cost discipline, while maintaining our long-term growth mindset,» he said. 

«In times like these, the owner culture we have nurtured over many years becomes a critical success factor. The people of Ninety One have the team spirit, skill and self-belief to prevail in the face of hostile business conditions.

»In spite of the well-known structural challenges faced by the active investment management industry, the dominant headwinds are cyclical in nature. We are confident in our ability to regain our growth momentum."

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