Ninety One’s assets under management (AUM) have surged by £11.1bn over the past year after a stellar second-quarter performance, with a little help from Sanlam Investment’s UK assets.
The asset manager major on Tuesday said its AUM rose to £139.7bn at the end of June from £128.6bn a year ago.
The June data also reflects a strong quarterly showing after the group reported £130.8bn in AUM at the end of the March, a big £8.9bn rally in the quarter ended June.
SA’s largest money manager said the AUM included £1.9bn from the transfer of Sanlam Investments UK’s active asset management business to Ninety One UK.
The creation of a long-term active asset management relationship between Ninety One and Sanlam Life Insurance is a step closer to fulfilment, with the completion of the UK component of the transaction in June.
The SA component of the transaction is expected to be completed later this financial year, with the relevant AUM transferring from Sanlam to Ninety One from that date.
Ninety One, which shed its Investec Asset Management identity five years ago, will become Sanlam’s primary active investment manager, gaining access to an extensive retail distribution network after entering into the deal in November 2024.
The company expects to complete the deal, which will provide Ninety One access to R400bn in new assets under management, in the 2026 financial year.
The UK component of the transaction involved the transfer of Sanlam Investments (SI) UK’s active asset management business to Ninety One UK and the appointment of Ninety One UK as the primary active asset manager for a specified portion of SI UK’s assets under management.
Ninety One founder and CEO Hendrik du Toit said at the time of announcing the deal in November last year that authorities should view the deal as the group’s reinvesting in SA — a sign of confidence in the economy.
After implementation, SIM would become a wholly owned subsidiary of Ninety One.
In addition, Sanlam would appoint Ninety One as the permanent investment manager to manage assets for Sanlam Investments UK, a wholly owned unit of the Sanlam Group. Sanlam would serve as an anchor investor in Ninety One’s international private and specialist credit strategies that meet its investment requirements.
As consideration for the transaction, the Sanlam Group would receive an equity stake of about 12.3% in Ninety One through a combination of Ninety One Ltd and Ninety One Plc shares, thereby establishing the Sanlam Group as a long-term shareholder of Ninety One.
Ninety One’s share price is up 33.8% year to date.
Despite the surge in AUM by Ninety One, the Public Investment Corporation, with its R3-trillion AUM, is by far the largest investor on the JSE, where a large chuck of its clients’ assets are invested.
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