Ninety One Group (LON:N91) reported higher assets under management, renewed net inflows and improved profitability for the year ended March 31, 2026, as management pointed to stronger demand for emerging market strategies and early benefits from its partnership with Sanlam Investment Management.
Hendrik, who led the presentation for Ninety One, said assets under management rose to £171.8 billion, driven by portfolio growth, the take-on of Sanlam Investment Management assets and a return to annual net inflows. Net inflows were £2.8 billion for the year, while adjusted earnings per share increased 12%. The board recommended a final dividend of £0.074 per share, taking the full-year dividend to £0.134 per share, up 10% year over year.
“I’m delighted to report growth in revenue and earnings after three tough years,” Hendrik said, adding that the relative attractiveness of emerging markets had improved during the period. He said this was important for Ninety One because the firm is closely associated with emerging market investing.
Assets Rise as Sanlam Partnership Takes Effect
Ninety One said assets under management increased by £41 billion over the year to £171.8 billion. The increase included £19.9 billion of portfolio growth, £18.3 billion from Sanlam and £2.8 billion of net inflows from other business. Hendrik said all asset classes except multi-asset recorded positive net inflows.
The Sanlam partnership, announced last year, was formally established at the beginning of February. Hendrik said the relationship is strong and “starting to deliver.” In South Africa, the Sanlam integration has moved to business as usual, with a final systems conversion expected shortly. Kim McFarland, Ninety One’s Finance Director, said the bulk of the Sanlam assets were taken on near the end of the financial year, meaning the earnings impact on fiscal 2026 results was limited.
During the question-and-answer session, Hendrik said one attraction of the Sanlam transaction was that it shifted Ninety One’s portfolio toward fixed income at a time when equity beta had already supported the business. He said the firm believed it had capacity to run larger fixed income portfolios, particularly in South Africa, and described the business as a margin enhancer and portfolio stabilizer despite lower fees.
Revenue and Profit Improve, Fee Pressure Remains
McFarland said management fees increased 9% to £617.3 million, reflecting a rise in average assets under management from £129 billion to £151.8 billion. The average fee rate declined to 40.7 basis points, with the final six months averaging 40 basis points.
She attributed the fee-rate decline to business mix, including growth in lower-fee portfolios and the onboarding of Sanlam assets, alongside declines in higher-fee portfolios. Looking ahead, McFarland said Ninety One expects an average fee rate between 38 and 40 basis points, consistent with the firm’s view of a structural decline of one to two basis points per year.
Adjusted operating profit rose 12% to £211.3 million, while the adjusted operating margin expanded to 32% from 31.2%. Profit before tax increased 2% to £207.5 million, and profit after tax rose 2% to £153.5 million. The effective tax rate was 26%, down slightly from 26.5% a year earlier.
Adjusted operating expenses increased 8% to £448 million. Employee remuneration rose 11% to £289.9 million, representing 65% of the total expense base. McFarland said the increase reflected higher fixed remuneration tied to headcount and inflation, as well as higher variable remuneration in line with increased adjusted operating profit. Business expenses rose 3% to £158.1 million, with technology and artificial intelligence spending up £5.6 million.
AI, ETFs and Regional Expansion Highlight Growth Plans
Management said Ninety One is investing through the cycle in talent and technology, with a growing emphasis on artificial intelligence. Hendrik said the firm is moving from AI experimentation toward business model adaptation, calling AI both “a huge opportunity” and, if not comprehensively adopted, a potential “existential threat.”
The company said its Ninety One Foundry is incubating initiatives outside the direct operating scope of its main units. These include building in-region emerging market investment capabilities in the Middle East and Asia, developing a digital finance capability and rethinking the business for the AI era.
Ninety One also highlighted its strategic partnership with State Street Investment Management for active exchange-traded funds. Hendrik said the firm had worked during the year to position itself for business expected to flow through active ETFs. In South Africa, Ninety One issued its first domestic active ETFs under its own brand.
In Asia, the firm’s joint venture with Singapore-based Arc Avenue Asset Management has received regulatory approvals and became fully operational on May 18. Hendrik said the venture improves Ninety One’s ability to understand the regional IPO pipeline and evolving technology and growth investment opportunities in Asia. In the Middle East, Ninety One has secured seed capital for its first domestic credit vehicle run from Saudi Arabia and moved a senior investor to Riyadh to lead the local team build-out.
Capital Returns and Buybacks Continue
McFarland said Ninety One’s qualifying capital was £253.4 million at March 31, 2026. After the proposed dividend, the firm expects a capital surplus of £163.4 million and capital coverage of 241%.
During the year, Ninety One continued share buyback programs, returning £27.4 million of capital and reducing the share count by 17.3 million shares. Including the proposed final dividend, the interim dividend and buybacks, McFarland said the firm will have returned £155.4 million of capital to shareholders for the year. She also noted that since listing six years ago, Ninety One has returned more than 60% of its initial market capitalization to shareholders.
Outlook Focuses on Flows, Performance and Discipline
Hendrik said Ninety One is in a stronger position than a year ago, with visible demand recovery for emerging markets and a competitive offering. He said the firm expects the U.K. business and South Africa to improve, while acknowledging pressure in South African multi-asset strategies and style-related underperformance in parts of the quality equity book.
In response to analyst questions about the slowdown in second-half net flows, Hendrik said market nervousness late in the year, equity down-weights and pressure in South African multi-asset products affected the result. He said some expected mandates had taken longer to fund and described the second-half flow outcome as disappointing, while adding that the annual net inflow level was sustainable under current conditions.
On industry consolidation, Hendrik said Ninety One is not “a typical M&A or acquisition-driven business.” He described the Sanlam deal as an unusual opportunity to build a relationship with a major distributor and said the firm is more likely to pursue partnerships, such as State Street for ETFs, than acquire companies.
“We are investing through the cycle in talent and technology to be future fit,” Hendrik said. He added that Ninety One remains focused on cost and operating discipline, investment performance and client service.
About Ninety One Group (LON:N91)
Ninety One Group operates as an independent global asset manager worldwide. It serves private and public sector pension funds, sovereign wealth funds, insurers, corporates, foundations, and central banks, as well as large retail financial groups, wealth managers, public and private equity as well as debt, private banks, and intermediaries. It seeks to invest in South African companies struggling with the economic fallout from the spread of coronavirus. Ninety One Group was founded in 1991 and is headquartered in Cape Town, South Africa with additional offices in Africa.
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