You can also listen to this podcast on iono.fm here. ADVERTISEMENT CONTINUE READING BELOW JIMMY MOYAHA: Sticking with some of the numbers that came out today, Ninety One gave us their results for the year ended 31 March 2024. I wasn’t able to catch up with Hendrik du Toit, the founder and CEO of the business, but I have the next best thing, the best banking analyst in South Africa – and possibly in the world.
That’s tough in this environment because it’s a people environment, but they reduced headcount slightly, as well as the variable fee revenue. In other words, the bonuses were cut a bit.And then there were a few rats and mice. Things like performance fees were actually up. Net interest income was actually up, which made the operating result in the end marginally positive, especially when you add back a very nebulous thing – the share scheme expenses.
You can see that in market movements as well. Emerging markets haven’t done well because interest rates stayed higher there as well, and most of the tension was focused in the US. When emerging markets start doing well again and start getting flows, then should come with a good year, and they’ve kept their headcount stable. So it’s very leveraged to good markets for them.
KOKKIE KOOYMAN: Yes, short-term, asset managers are really focused on the political negotiations because the outcome of those is going to be crucial in South Africa whether more money leaves the country or comes back to the country. But in South Africa the big phenomenon for our fund managers is: Does the money go offshore and does it then go to offshore fund managers, or does it even come back or just stay here? That’s going to depend on the political process.
KOKKIE KOOYMAN: We at Denker had that same phenomenon a few years ago, and I’m sure we did what everybody else is doing. So to all your questions, I would say that next year should be better. All these wealth and asset managers are actually at quite attractive valuations.
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High interest rates dampen Ninety One’s resultsConditions remain challenging for asset managers, says CEO.
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