Ninety One has reported a net outflow of £4.3bn for the six months to September.
The asset manager noted the ‘extremely challenging market and business conditions’ the sector is wrestling with at the top of its interim results statement.
Founder and chief executive Hendrik du Toit said the caution signalled at the beginning of this reporting period was justified.
He noted that the impact of sharply rising interest rates and geopolitical risks have continued to dampen investor risk appetite.
While ‘on the surface, equity markets rose’, the rally was extremely narrow and largely restricted to a small number of large US technology companies, he said.
See also: Are US equities overvalued, or are valuations just high?
The firm’s assets under management fell by 5% over the half year to £123.1bn.
Earnings per share decreased by 5% to 8.9p and adjusted earnings per share decreased by 9% to 8.2p. Adjusted operating profit margin was unchanged at 32.6%.
Du Toit added: “We expect these conditions to remain for the rest of the financial year. 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.
“In times like these the owner culture we have nurtured over many years becomes a critical success factor.”
