2 minute read
Ninety One floats on Johannesburg and London stock exchanges
After almost three decades as part of a diversified financial services business, Investec Asset Management has separated from its parent, Investec, and listed on the Johannesburg and London Stock Exchanges as Ninety One. “This is the start of an exciting new chapter for us and the final step on our journey to independence,” Hendrik du Toit, founder and CEO of Ninety One, says.
In September 2018, the Investec Board undertook a strategic review and announced that it would unbundle its asset management business. The key catalyst for the separation was increasing clientdemand for active asset managers to be entirely independent, coupled with the belief that it would provide a platform from which to invest for better client outcomes and growth. “For us this is about simplicity and focus. I believe more focused businesses do better than broad giants that try to grow laterally,” Du Toit explains.
“In addition, the structure also offers the opportunity to increase and widen employee ownership, which will help us attract and retain talent and ensure deeper alignment between clients, staff and shareholders.”
Since inception, the firm has experienced strong growth in assets under management (AUM) with compound annual growth of 15% in the last decade and £44bn of cumulative net flows since April 2009, which represents about 50% of total AUM growth. As at 30 September last year, Ninety One (then Investec Asset Management) managed $121bn (R2.3tn)of assets on behalf of clients, making it South Africa’s largest asset manager.
Ninety One chose a name with a strong connection to its heritage, which feels authentic to who they are and will help them to stand out in a competitive market. “We are very proud of our heritage and our name is a nod to our beginnings,” Du Toit says.
“We started in South Africa, in 1991. It was a time of massive and transformational change. Being part of that change made us who we are today. It taught us that active investing could be a force for good, to see the world differently and to recognise and react to change and uncertainty. Today, we believe that’s what sets us apart.”
Du Toit reiterates that beyond its name, the firm isn’t going to change. “We’re still the same people, with the same investment offering and the same passion for our clients.”
Commenting on the headwinds facing the asset management industry globally, such as the rise of passives and increased consolidation, Du Toit states, “Like any industry, the asset management industry has its fair share of challenges because, as industries mature, the market starts working and the competition becomes more ruthless. However, we are still in an industry where the prize for success is very significant.”
Ninety One’s market share is small in the context of the global industry size, which is in excess of $75tn. “If we just do our job properly, there is significant scope for growth,” he adds. “In the long run, the growth of passives will create opportunity for active managers because the markets will become less efficient. Ultimately, I am confident that we will be able to continue to ply our trade successfully for clients and ensure a better retirement for them – that’s ultimately what we’re about.”
The Ndlovu Youth Choir performs at a recent Taking Stock event ahead of Ninety One’s listing
