Ninety One Group: history, ownership, mission, how it works & makes money

A Brief History of Ninety One Group

Ninety One Group, formerly known as Investec Asset Management, was founded in 1991 in South Africa. The name change to Ninety One occurred in March 2020, following the demerger from the Investec Group, which was aimed at allowing the asset management business to operate independently.

By March 2021, Ninety One had assets under management (AUM) totaling approximately £121.5 billion ($167.2 billion). This change marked a significant milestone as the firm sought to establish a distinct identity while capitalizing on its strong investment performance across various asset classes.

Through its strategic operations, Ninety One has expanded its global footprint, with offices in London, Cape Town, New York, and Hong Kong. The firm specializes in equities, fixed income, multi-asset investments, and alternatives. The company's commitment to sustainable investing has also been a focal point of its investment philosophy.

In July 2021, Ninety One announced an increase in its dividend, reflecting strong financial performance. The dividend payout increased to 6.5 pence per share from the previous 5.8 pence, underscoring a solid operational performance amidst challenging market conditions.

The firm went public on the London Stock Exchange and the Johannesburg Stock Exchange in March 2020, with an initial market capitalization of around £1.4 billion ($1.9 billion). This IPO was part of its strategy to bolster its balance sheet and expand its investment capabilities.

As of September 2023, Ninety One reported AUM of £130 billion ($179 billion), reflecting a year-on-year increase of approximately 7.1%. The firm's investment strategies have generally outperformed benchmarks, with a notable emphasis on long-term growth.

Ninety One's investment philosophy emphasizes the integration of sustainability into its investment decisions. This approach has gained traction globally, with a growing number of clients seeking sustainable investment options. In its annual report for 2022, the firm reported a 35% increase in sustainable investment funds compared to the previous year.

Additionally, Ninety One’s commitment to technology has positioned it well in the rapidly changing asset management landscape. Its investment in digital platforms has enhanced client engagement and streamlined operational efficiencies.

In terms of financial performance, Ninety One recorded a net profit margin of approximately 29% in the fiscal year ending March 2023. This profitability is attributed to a strong performance in its investment strategies and effective cost management.

As of the latest reports, Ninety One maintains a robust balance sheet with a liquidity ratio of 1.5, underscoring its ability to manage short-term obligations effectively. Its strategy of organic growth coupled with selective acquisitions has been pivotal in enhancing its market position.

A Who Owns Ninety One Group

Ninety One Group is a prominent independent investment manager that operates globally, with significant exposure to both retail and institutional clients. Founded in 1991, the company has developed a diversified asset management business specializing in investment strategies across equity, fixed income, and multi-asset solutions.

As of the latest reports, Ninety One Group has its shares listed on the London Stock Exchange and the Johannesburg Stock Exchange, making it a publicly traded entity. The ownership structure is comprised of various stakeholders, including institutional investors, retail shareholders, and company insiders.

The significant shareholders of Ninety One Group include:

As of October 2023, significant institutional investors holding stakes in Ninety One Group include major asset management firms and pension funds. Notable shareholders include:

• The Vanguard Group - Holding approximately 10.2% of total shares.
• BlackRock - Holding approximately 8.5% of total shares.
• Old Mutual Investment Group - Holding approximately 5.7% of total shares.
• Legal & General Investment Management - Holding approximately 3.3% of total shares.
• Standard Life Investments - Holding approximately 2.9% of total shares.

The company has also seen a significant increase in its ownership base since its initial public offering (IPO) in March 2020. At the time of the IPO, the company was valued at approximately £2.6 billion, with its share price set at £1.74.

Financial performance indicators reflect the company’s growth trajectory; as of the Q2 earnings release in August 2023, Ninety One Group reported assets under management (AUM) of approximately £137 billion, marking an increase of 11% year-on-year. The group’s revenue for the first half of the financial year stood at £215 million, representing a growth of 7% compared to the previous year.

The diverse ownership structure of Ninety One Group, combined with its robust financial performance, illustrates the confidence investors have in the company's ability to manage assets effectively and deliver value in the long term.

Ninety One Group Mission Statement

Ninety One Group, a prominent investment management firm, adheres to a mission statement that emphasizes its commitment to delivering superior long-term investment performance while fostering a positive impact on society and the environment. The company aims to empower its clients through innovative investment solutions, driven by deep research and understanding of the markets in which they operate.

Mission Statement Elements

• Client-Centric Approach: Ninety One focuses on building partnerships with clients to create tailored investment strategies that meet their financial goals.
• Long-Term Performance: The firm is dedicated to generating sustainable returns over the long term, rather than short-term gains.
• Social Responsibility: Ninety One integrates ESG (Environmental, Social, Governance) factors into its investment processes, reflecting its commitment to sustainable investing.

Recent Financial Performance

Ninety One reported a **£8.2 billion** increase in assets under management (AUM) during the financial year ending March 2023, bringing the total AUM to **£130.1 billion**. This reflects a **6.7%** year-on-year growth. The company's net inflows for the same period were **£3.6 billion**, indicating continued investor confidence and effective fund management.

Investment Strategy

The investment strategies employed by Ninety One prioritize a combination of active management and sustainability. The firm manages various asset classes, including equities, fixed income, and multi-asset investment strategies. Some notable strategies include:

• Global Equity: A diverse portfolio with a focus on high-quality companies, leveraging fundamental research.
• Emerging Markets Debt: Investments in government and corporate bonds from emerging economies, facilitating high yield opportunities.
• Multi-Asset Solutions: Tailored investment strategies that balance risk and return across asset classes.

Impact of ESG on Investment

Ninety One's commitment to ESG factors has enhanced its investment approach, contributing to its strong performance. As of June 2023, over **80%** of its assets are managed with an integrated ESG framework. The firm has been recognized for its efforts in sustainable investing, being ranked in the top tier of global asset managers by the Global Sustainable Investment Alliance (GSIA).

Market Position

As of September 2023, Ninety One holds a significant position in the European investment management market, ranking **8th** among independent asset managers in the UK. The firm's market capitalization is approximately **£1.5 billion**, reflecting its robust standing in the industry.

Recent Recognition

Ninety One has received multiple accolades for its commitment to sustainable investment and performance, including:

• Best Asset Manager – ESG 2023 by Financial Times.
• Best Emerging Markets Fund at the 2023 Citywire Awards.
• Top 100 Best Workplaces by Great Place to Work in 2022.

Financial Overview Table

This comprehensive look at Ninety One Group's mission statement, combined with its financial performance and market position, illustrates a firm that is dedicated to both financial success and a positive societal impact.

How Ninety One Group Works

Ninety One Group is a prominent investment manager founded in 1991, focusing primarily on asset management in several global markets. The firm operates in two main segments: asset management and wealth management. As of August 2023, Ninety One had approximately £135.6 billion in assets under management (AUM).

Asset Management

The asset management division offers a wide range of investment strategies across equities, fixed income, multi-asset, and alternative investments. Ninety One's investment philosophy emphasizes long-term sustainable returns, supported by rigorous research and risk management practices.

As of the end of the fiscal year 2023, Ninety One reported the following AUM breakdown by investment strategy:

Wealth Management

Ninety One also caters to high-net-worth individuals and institutions through its wealth management services. This division focuses on personalized investment solutions and comprehensive financial planning to meet the complex needs of its clients.

In its latest financial report for the year ending March 2023, Ninety One highlighted substantial growth in its wealth management segment:

• Wealth AUM grew by 12% year-on-year to reach £32.5 billion.
• The number of active clients increased by 8%, reaching a total of 6,200 clients.

Geographic Presence

Ninety One operates in several key markets, with significant contributions from various regions:

Performance Metrics

Ninety One consistently monitors its investment performance against benchmarks to ensure accountability and transparency. For the fiscal year ending March 2023, the firm reported the following performance data:

• The equity funds delivered an average return of 15.8% against a benchmark of 12.5%.
• The fixed income portfolio achieved a return of 5.2%, outperforming its benchmark by 1.1%.

Operational efficiency is also a priority. The firm's operating margin for the year was reported at 37%, with an overall revenue of £670 million.

Ninety One continues to expand its reach and enhance its service offerings to meet the evolving needs of investors globally. Its focus on sustainable and responsible investment practices positions it favorably in the asset management landscape.

How Ninety One Group Makes Money

Ninety One Group, a prominent global investment management firm, generates its revenue primarily through management fees, performance fees, and transaction fees associated with its investment products and services.

As of the latest financial reports for the year ending March 31, 2023, Ninety One Group reported total revenue of approximately £622.4 million, up from £582.3 million the previous year, indicating an increase of 6.9%.

• Management Fees: Approximately £563.9 million (90.6% of total revenue)
• Performance Fees: Approximately £53.5 million (8.6% of total revenue)
• Transaction Fees: Approximately £5.0 million (0.8% of total revenue)

The management fees are primarily derived from the assets under management (AUM), which stood at £141.4 billion as of March 31, 2023. This was an increase from £134.2 billion reported in the prior year.

In addition to investment management, Ninety One also offers advisory services, which contribute to the overall revenue stream. Advisory services, while a smaller percentage of revenue, play a role in diversifying the income sources of the firm.

The company's asset management strategies include a strong focus on equity, fixed income, multi-asset, and alternative investments, which cater to a wide range of institutional and retail clients globally.

As of the latest fiscal year, Ninety One also reported net inflows of £3.9 billion in their strategies, reflecting growing investor confidence and market presence. This inflow, paired with the increasing AUM, is a fundamental driver behind the firm's continuing revenue growth.

Overall, Ninety One Group's diversified approach to asset management and the robust performance of its investments have positioned the company well within the competitive investment landscape, allowing for sustained profitability and growth in an evolving financial market.