Ninety One, Investec’s recently spun-off asset management unit, has reported a slight decline in client inflows for its year to end-March, a period during which global equities were battered by the Covid-19 pandemic.
In its first post-listing results, the group reported that net inflows fell 1% to £6bn (R134bn) from the year-earlier period, while assets under management slipped 7% to £103.4bn, with net inflows being more than offset by market volatility.
In its half-year results to end-September, Investec had reported that asset management generated net inflows of £3.2bn.
Ninety One listed in March at a time investors were dumping assets, commodities, and currencies and fleeing into safe havens due to the concern of a rapidly escalating Covid-19 pandemic.
Market volatility and a weak global economic outlook are expected to persist for some time, said CEO Hendrik du Toit.
“Ninety One is committed to doing its best for all stakeholders in the ongoing battle against this pandemic and its devastating economic consequences,” Du Toit said.
“We will do this by remaining focused on our clients and the investments we make on their behalf,” he said.
Ninety One said it expected “significant revenue pressure” in the period ahead.
Ninety One expects to target an ordinary dividend payout ratio of at least 50% of its profit after tax
The group reported profit after tax of £153m for its 2020 year, a 12% increase from the year-earlier period.
It had paid a dividend before its demerger.
In morning trade on Wednesday, Ninety One's share price was up 2.34% to R43.25.
Update: May 20 2020
This article has been updated with additional information
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