Ninety One posts strong half-year results as markets recover, inflows surge
Key topics:
Record AUM: Up 16% to £152.1bn on inflows and market gains
Earnings Up: Profit metrics rise with higher margins and fees
Challenges: Fee pressure persists; Africa and UK see outflows
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BizNews Reporter
Ninety One, the independent investment manager listed on the London and Johannesburg Stock Exchanges, reported strong interim results for the six months ending September 30, 2025, showing significant improvements across key financial and operational metrics. CEO Hendrik du Toit noted that the period was characterised by improving business conditions, strong markets, competitive investment returns, net inflows, and successful cost control, all contributing to healthy earnings growth.
The Good: Financial and operational gains
The most notable positive development was the substantial turnaround in client activity. The Group moved from net outflows of £5.3 billion in the comparative prior period (H1 2025) to net inflows of £4.3 billion. This contributed to a 16% rise in closing assets under management (AUM) over the six months, reaching a new record high of £152.1 billion. This increase was also significantly aided by a sizeable positive market and foreign exchange impact of £17.0 billion.
Financially, the results were robust:
Adjusted operating profit increased by 12% to £98.8 million (H1 2025: £88.6 million).
The adjusted operating profit margin improved to 32.1% (H1 2025: 30.5%).
Adjusted earnings per share (EPS) grew by 15% to 8.4 pence.
Profit before tax increased by 10% to £102.2 million.
The Board declared an interim dividend per share of 6.0 pence, an 11% increase over the prior period.
Performance fees were significantly higher, rising 77% to £14.0 million (H1 2025: £7.9 million).
Operationally, the focus on strategic growth paid dividends. Net inflows were positive across most asset classes, driven particularly by substantial net inflows into equities (especially global strategies) and an encouraging recovery in fixed income. The Sanlam relationship is already delivering, with the UK transaction completed in June 2025 contributing £1.9 billion to AUM. Furthermore, the firm-wide investment performance saw improvement in the short and medium term, with one- and three-year outperformance closing at 74% and 70% respectively (up from 68% and 59% at March 31, 2025). Management believes the company is well-positioned for an early recovery in demand for emerging markets and differentiated active investment management.
The Challenges: Fee compression and regional outflows
Despite the strong headline figures, the results show continued competitive pressure and some localised weakness.
One key challenge is the decreasing average management fee rate, which fell to 41.5 basis points (bps) from 44.5 bps in the prior period. This was attributed to increases in AUM related to lower than average fee rate portfolios, AUM decreases for higher-fee clients, and some downward fee adjustments.
In terms of expenditure, adjusted operating expenses increased by 3% to £208.7 million. This rise was primarily driven by an 8% increase in employee remuneration, stemming from higher fixed remuneration and variable remuneration aligning with increased operating profit. The average headcount also increased.
Geographically, while Asia Pacific was the largest contributor to net inflows (mainly global equities), the Africa client group saw net outflows of £1.225 billion, primarily from South African equities and multi-asset strategies. The UK also experienced net outflows of £608 million, resulting from clients rebalancing their portfolios. Additionally, adjusted net interest income decreased by 21% to £7.6 million (H1 2025: £9.6 million).
Overall, the business is stronger than in the previous reporting period, capitalising on a more supportive market environment, though management acknowledges that the environment remains intensely competitive.