This article first appeared on GuruFocus .
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Assets Under Management (AUM):Increased by 31% to GBP171.8 billion.
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Net Inflows:GBP2.8 billion for the year.
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Operating Margin:Expanded from 31.2% to 32%.
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Adjusted Earnings Per Share (EPS):Grew by 12% to 17.4p.
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Dividend Growth:10% year-on-year increase.
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Management Fees:Increased by 9% to GBP617.3 million.
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Adjusted Operating Expenses:Increased by 8% to GBP448 million.
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Adjusted Operating Profit:Up 12% to GBP211.3 million.
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Profit Before Tax:Increased by 2% to GBP207.5 million.
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Profit After Tax:GBP153.5 million, up 2% from last year.
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Effective Tax Rate:26%, down from 26.5% in the prior year.
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Capital Surplus:Estimated at GBP163.4 million after dividend payment.
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Share Buyback:GBP27.4 million returned, reducing 17.3 million shares.
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Full Year Dividend:13.4p per share, an increase of 10%.
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Release Date: June 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Assets under management grew by 31% to GBP171.8 billion, driven by portfolio growth and the acquisition of Sanlam Investment Management.
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Operating margin expanded from 31.2% to 32%, leading to a 12% growth in adjusted earnings per share and a 10% year-on-year dividend growth.
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Ninety One Ltd ( JSE:NY1 ) has established a strategic partnership for active ETFs with State Street Investment Management, enhancing its market position.
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The company is actively integrating AI into its business model, viewing it as a significant opportunity for future growth.
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The partnership with Sanlam is strong and starting to deliver positive results, with the Sanlam UK book fully absorbed into the business.
Negative Points
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Fee pressure persists, with a decline in the average fee rate to 40.7 basis points, and future guidance between 38 to 40 basis points.
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The UK business experienced unforeseen outflows and delayed inflows, impacting overall performance.
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South Africa faced structural outflows from institutional retirement funds, compounded by the loss of a long-standing mandate.
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The quality equity style underperformed mainstream benchmarks, affecting the equities book.
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There was a slowdown in net flows in the second half of 2026, with Asia Pacific contributing less than expected.
Q & A Highlights
Q: Any thoughts on the Schroders comments that they needed more scale in active in order to succeed and hence, the merger with Naveen? A: Hendrik du Toit, CEO, responded that Ninety One focuses on competence and quality rather than size. He emphasized that their operating margin is higher than Schroders, indicating a focused specialist approach. Size is not the focus for Ninety One, and they prefer to grow in areas where they are already competent.
Q: What was the management fee basis points if Sanlam were excluded? Pre-Sanlam, you said the floor for fees was approximately 40 basis points. Now what is it? A: Kim McFarland, Finance Director, explained that the Sanlam assets impacted the fee rate, but the decline was also due to the mix of large mandates at lower fee rates. The current guidance is between 38 to 40 basis points, factoring in the Sanlam impact.
Q: How do you feel about the mix between flows and margins as an indicator of business health? A: Hendrik du Toit, CEO, stated that net flows are an important indicator of healthy client relations and long-term growth potential. The focus is on serving clients well, profitability, and adding new business. He emphasized that the industry must prove its worth, especially as interest rates rise.
Q: Could you provide any color on the asset class mix of the GBP18.3 billion Sanlam take-on? A: Hendrik du Toit, CEO, confirmed that the Sanlam acquisition shifted the portfolio towards fixed income, which is seen as a margin enhancer and portfolio stabilizer. This was intentional to balance the equity beta that had worked hard for the business.
Q: Can you give more color on what drove the H2 slowdown in net flows? A: Hendrik du Toit, CEO, explained that the slowdown was due to market nervousness, geopolitical events, and structural outflows in South Africa. He noted that some allocations to international and emerging markets were delayed but expected to reestablish.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
