Money manager Ninety One’s assets under management are inching closer towards the R4-trillion mark following the conclusion of a deal with Sanlam.
Ninety One said on Thursday that its assets under management (AUM) rose to £171.8bn (R3.8-trillion) at the end of March from £130.8bn a year ago and £159.8bn at the end of December.
The latest figure includes AUM with a take-on value of £16.5bn from the transfer of Sanlam Investment Management’s active asset management business in South Africa to Ninety One, with effect from February 1.
The group is on course to be the first South African asset management company to breach the R4-trillion AUM mark.
The deal provided Ninety One access to R400bn in new assets under management.
After the transfer of SIM’s assets to Ninety One, it became a wholly owned subsidiary of the money manager. Ninety One became Sanlam’s primary active investment manager, gaining access to an extensive retail distribution network.
In addition, Sanlam appointed Ninety One as the permanent investment manager to manage assets for Sanlam Investments UK, a wholly owned unit of the Sanlam Group. Sanlam serves 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 received an equity stake of about 12.3% in Ninety One through a combination of Ninety One Ltd and Ninety One Plc shares, establishing the Sanlam Group as a long-term shareholder of Ninety One.
Business Day reported previously that Ninety One was looking to up the ante in China and the Middle East for growth after doubling down in its core markets.
Ninety One will publish its results for the year ended March on June 3.
With Kabelo Khumalo
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