Ninety One Shares Drop 6.9% Despite 31% AUM Jump and GBP55 Million Buyback Expansion
Updated
Updated · London South East · Jun 3
Ninety One Shares Drop 6.9% Despite 31% AUM Jump and GBP55 Million Buyback Expansion
2 articles · Updated · London South East · Jun 3
Summary
London-listed Ninety One fell 6.9% to 206.74p, while its Johannesburg shares dropped 6.1% to 6.7%, even after the asset manager reported higher annual profit, dividends and assets under management.
GBP171.8 billion of AUM at March 31 was up 31% from a year earlier, driven by GBP2.8 billion of net inflows, GBP18.3 billion of Sanlam-related assets and a GBP19.9 billion market and foreign-exchange uplift.
Pretax profit rose 2% to GBP207.5 million, total dividend increased 10% to 13.4p, and the company expanded its share buyback to GBP55 million from GBP30 million, extending it to July 21.
The Sanlam transaction gave Ninety One South Africa active asset-management assets and a UK mandate, while Sanlam received about a 12.3% equity stake in the group.
Looking ahead, Ninety One said it is shifting from a defensive stance to a more risk-on approach, citing visible recovery in demand for emerging markets despite a difficult geopolitical backdrop.