Ninety One, South Africa’s largest asset manager, announced that its assets under management (AUM) fell by £4.5 billion (about R106 billion) in the first quarter of 2023, with AUM standing at £124.8 billion (about R2.9 trillion) at the end of June, down more than 7% year-on-year.
- The company reported record outflows of £10.6 billion to end March, with investors moving to safe havens during its 2023 year, such as fixed-income investments, due to concerns about the global economic outlook and a rise in interest rates.
- Ninety One CEO Hendrik du Toit stated that the situation had stabilised in April and May, but the company is still cautious about the future outlook.
- The asset manager aims to broaden its offerings to include more alternative investments such as private equity, infrastructure, and real estate, which are seen as a way to diversify its business and generate higher returns.
- Despite the decline in assets under management, Ninety One’s shares are still up more than 6% year-to-date.