Ninety One company results: Pre-tax profit falls 20% amid ‘challenging’ year

Assets under management fell by 10%


Asset management firm Ninety One’s pre-tax profit fell by 20% to £212.6m over its last financial year, according to the company’s results, with assets under management also dipping by 10% to £129.3bn.

The results, which were taken over 12 months to the end of March 2023, stated Ninety One’s adjusted operating profit fell by 10% to £206.9m, with the adjusted operating profit margin decreasing by 32.7% compared to its previous year’s results. The firm said this was because its operating revenue fell by 5%, while its operating expenses fell by just 2%.

Net revenue for the year fell by 6% to £627.1m, while post-tax profit also fell by 20% to £163.8m.

In terms of assets under management, closing AUM fell by 10% from £143.9bn to £129.3bn, while average AUM dipped by 3% from £138.6bn to £134.9bn.

See also: “Baillie Gifford FUM plummets £20bn

The overall fall in AUM was due to net outflows of £10.6bn, combined with negative market and foreign exchange movements wiping a further £4bn of assets. Last year, the firm saw positive inflows of £5bn, and positive market and FX movements amounting to £8bn.

Management fees fell by 4% to £607.7m, with the average fee rate 0.7 basis points lower than the previous year at 45bps. Ninety One said this was due to “a change in the mix of investment strategies” owned by their clients.

“After a challenging year, [we are] pleased to present a set of robust financial results for the year ended 31 March 2023,” it stated.

The firm’s chair Gareth Penny said: “We continue to monitor our performance in delivering on our strategic objectives, maintaining strict internal controls and operating within established risk guidelines.

“This should help us achieve our growth objectives, in addition to developing our global pool of talent that aims to deliver attractive value for clients and shareholders both in the present and over coming generations.”

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