Ninety One Asset Management saw a 27% rise in assets during 2020 – but it’s chief executive lamented negative flows.
Assets under management came to £130.9 billion – a record for the company – but outflows last year were of £0.2 billion, which compares to £6 billion of inflows in 2019.
The results for the full year 2020 were the first for Ninety One since it became a listed company and changed its name from Investec.
Hendrik du Tout, chief executive, said he was disappointed with the negative flows but added that new money had picked up in the second quarter of the reporting year.
“Flow momentum has improved in the second half and we enter the new financial year with a strong pipeline. Nevertheless, we are disappointed that we have not achieved net inflows over the full reporting year,” he said.
However, along with record assets, profit before tax also rose by 9% to £204.1 million, another record. Du Toit thanked staff for their commitment and all stakeholders for support.
Neil Shah, research director at Edison Group, said Ninety One’s performance was “storming”.
“The firm thanked its broad stakeholder base for supporting it, suggesting that without them, such significant performance would not have been possible. While this was the first year that the business operated under the name, Ninety One, and the first year as a listed company, the business saw positive results.
“However, Ninety One’s CEO and founder suggested that they were disappointed not to have achieved net inflows over the full reporting period, citing outflows of £0.2 billion,” he said.
Du Toit suggested the company’s push toward net zero would increase, spurred on by the Covid-19 pandemic, which he said accelerated change.
“The quest for sustainability has become central to our industry. We applaud this and we are ready to play our role in the pursuit for a net zero world. We believe that our purpose of investing for a better tomorrow is now more relevant than ever and we remain excited by the long-term growth opportunities for Ninety One.”
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