Our opinion on the current state of NY1

2023年11月17日

Ninety-One is an asset management company spun out of Investec and separately listed on Monday 16th March 2020. The listing occurred just as the corona epidemic was causing world stock markets to crash so the shares fell more than 40% below their pre-listing range on the first day. There was no initial public offer (IPO). In our view this massive blue chip share is significantly under-valued at current levels. The company's employees now own 22,5% of its equity. Obviously, this company's performance was impacted by the decline in equities since the pandemic - but the value of its assets under management (AUM) was rising as markets around the world recovered. In its results for the six months to 30th September 2023 the company reported headline earnings per share (HEPS) down 5% and net outflows of GBP4,3bn. The share has recovered fully from the losses during COVID-19 and is trading on a multiple of 10.58. On 14th July 2023 the company reported its assets under management (AUM) on 30 June 2023 as GBP124,8bn - down from a year earlier at GBP 134,9bn. On 17th October 2023 the company reported AUM at GBP123,1bn. The company said, "Rising interest rates and increased geopolitical uncertainty have contributed to continued investor caution. Equity markets have been driven by narrow sectoral and geographic performance". We see this as a solid rand-hedge with good long-term potential. Obviously, this share is directly impacted by the direction of the trend on Wall Street and world markets.