Ninety One to pay maiden dividend


Ninety One to pay maiden dividend

Published Date: 2020-11-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Ninety One to pay maiden dividend

The fund manager experienced its first half-year net outflows as investors became more cautious and it lost mandates.

Ninety One has declared a maiden interim dividend after maintaining a solid performance despite the impact of Covid-19 on investment markets this year.

The fund manager, which was unbundled by Investec after listing on the London Stock Exchange earlier this year, experienced its first half-yearly outflows since the second half of 2017, with net outflows of £300 million after it lost a few large institutional mandates, relating to performance, and a cautious investor approach in the advisor channel. It said its SA business capitalised on its market leadership position and strong investment performance track records in spite of very weak economic conditions.

Assets under management (AUM) increased by 15% to £119 billion for the six months ended September, supported by positive market movements. The market and foreign exchange impact in the first half added £15.9 billion. The average AUM decreased 3% to £114 billion. It reported a 1% decline in net revenue to £297 million despite a big improvement in performance fees to £18 million. Profit before tax rose 3% to £94.8 million and basic and headline earnings per share came in 1% higher at 7.9 pence. It's paying an interim dividend of 5.9p.

The company's shares rose 3.4% to R46.44 yesterday.

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