Asset manager Ninety One has attributed its volatile half-year results to “challenging operating conditions” after investors pulled £3.2bn from its funds in the six months up to 30 September 2022.
The London-listed firm’s assets under management (AUM) decreased 8% to £132.2bn – down from £140bn in the same period last year. It also marks a decline from the record £144bn AUM posted in March at the end of the firm’s 2022 financial year.
Founder and CEO Hendrik du Toit predicted the harsh operating environment seen so far this year would continue for the foreseeable future.
“Rising inflation and interest rates, increased geopolitical uncertainty and sharply lower financial asset prices contributed to challenging operating conditions,” he said. “The high levels of client engagement could not counter the impact of this environment on our results. We saw net outflows in the first half, caused by lower levels of new business volumes and portfolio derisking by clients.”
“We are anticipating these tough conditions will persist for the foreseeable future. We remain committed to our long-term strategy and focusing all our attention on managing the investments of our clients to the standards they expect and delivering industry-leading service levels. In spite of the challenges, our people are motivated, experienced and adequately supported for the task at hand,” he added.
‘Resilient business’
Looking further ahead, du Toit was more optimistic, commenting: “We continue to build our business for the long term, while applying appropriate cost discipline. Ninety One is a resilient business with a diversified offering and a long track record of operating in different market conditions.
“We see ample long-term growth opportunities ahead in spite of current market conditions and the rapidly changing world in which we operate.”
