Ninety One Defies the Odds with R3.15 Trillion in Assets Despite Market Turbulence

It’s not often that an asset manager can report growing its portfolio during a year marked by investor anxiety and net outflows — but that’s exactly what Ninety One just pulled off.

South Africa’s largest asset manager, dual-listed on both the Johannesburg and London stock exchanges, has announced a sharp rise in assets under management (AUM) to £130.8 billion — that’s R3.15 trillion in local terms — at the end of its financial year in March 2025.

For context, that’s more than the annual budget of the entire South African government. Yet the journey to that number wasn’t exactly smooth sailing.

A Tale of Two Halves: Turning the Tide Mid-Year

In a candid statement accompanying its financial results, Ninety One described the 2025 financial year as “a year of two halves.” The first half? Bleak. Investors were jittery, and the company saw net outflows of £5.3 billion (roughly R127.6 billion).

The reasons weren’t surprising: global risk aversion, rebalancing by institutions, and cooling sentiment toward public and emerging markets. Equity strategies — especially global and sustainable ones — took the biggest knock.

But in the second half of the year, the script flipped. Investors returned, flows stabilised, and Ninety One recorded a modest £0.4 billion in net inflows. This shift — the company’s first positive half-year flow in two years — was a sign that confidence was returning.

Market Winds and Currency Tails

Despite more money leaving than coming in during the year overall, Ninety One still grew its AUM by nearly 4%. How? Positive market and currency movements did the heavy lifting, adding £9.7 billion (around R235 billion) to the bottom line and offsetting the outflows.

It’s a reminder that in investing, timing and positioning often count as much as inflows and outflows — and sometimes more.

Profit Dip, Dividend Lift

Of course, it wasn’t all good news. Performance fees — a lucrative slice of revenue for any fund manager — slipped slightly, contributing to a 1% dip in adjusted operating profit. That dropped from £190.5 million in 2024 to £187.9 million in 2025.

Add to that a steeper tax bill, and basic earnings per share fell from 18.4p to 17.2p — a not-insignificant drop.

Still, investors were rewarded with a higher dividend: 6.8p (R1.65) per share, up from 6.4p (R1.55) the previous year. In this economy, a rising dividend is no small gesture — and likely to keep shareholders sweet.

Why This Matters for South Africans

At a time when South African consumers are tightening belts and state finances are under pressure, it’s notable that local financial institutions like Ninety One are still finding ways to grow — especially on a global stage.

For many pension funds, corporates, and retail investors in South Africa, Ninety One plays a pivotal role. Its investment calls affect not just boardrooms in Sandton, but ordinary lives, from annuities to retirement savings.

The Big Picture: Rebalancing in a Shifting World

This performance paints a bigger picture about shifting investor sentiment. The first half of 2025 was marked by caution and volatility. The second half, while still uncertain, signaled a slow but steady re-engagement with risk — particularly in emerging markets like South Africa.

What’s interesting is how Ninety One’s global focus — including exposure to emerging markets — positioned it to capture that rebalancing trend. And in a world where capital shifts like quicksand, that agility matters.

A Quiet Win in a Noisy Year

In a year where headlines screamed about recession fears, inflation, and market downturns, Ninety One’s story is one of cautious optimism. It’s not that the storm is over — far from it — but that experienced asset managers still know how to navigate it.

For investors and the broader financial ecosystem in South Africa, that’s a reassuring signal.

Even when the chips are down, there’s still smart money at the table.

{Source: Daily Investor}

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