Ninety One has reported net outflows of £10.6bn in its full year results statement.
The asset manager noted it has faced “a year of significant headwinds” but still described the overall picture as “solid financial performance”.
Assets under management dropped by 10% to £129.3bn, while average AUM fell by 3% to £134.9bn.
Profit before tax fell by 20% to £212.6m. Adjusted operating profit decreased by 10% to £206.9m. Earnings per share decreased 19% to 18.2p and adjusted earnings per share decreased 10% to 17.3p.
The firm pointed to three-year outperformance by 71% of its funds as showing it remains “competitive”.
Founder and CEO Hendrik du Toit (pictured) commented: “The 2023 financial year has been difficult for our industry and for Ninety One. Coming off a record year in 2022, we faced the combination of higher inflation, the fastest rise in interest rates since we started the business, heightened geopolitical uncertainty, a liability-driven investing crisis in the UK, significant bank failures in the developed world and energy shortages across the world.
“All of this led to unprecedented risk-aversion among asset owners,” he continued. “This created significant headwinds for a firm like ours, which primarily offers “risk-on”, public-market strategies.
“Furthermore, and regrettably, we have to mention the deterioration of economic prospects in our original home market, South Africa, where we have a substantial business. We consider it our duty to call this out, but also to work constructively with government, civil society and other stakeholders to improve this situation.”
