Our opinion on the current state of NY1

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 year to 31st March 2023 the company reported AUM down 10% at GBP129,3bn and headline earnings per share (HEPS) down 15%. The company said, "Coming off a record year in 2022, we faced the combination of higher inflation, the fastest rise in interest rates since we started the business, heightened geopolitical uncertainty, a liability-driven investing (“LDI”) crisis in the UK, significant bank failures in the developed world and energy shortages across the world". The share has recovered fully from the losses during COVID-19 and is trading on a multiple of 10.46. 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. 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.