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Asset manager Alexforbes has reported higher annual profits, supported by a favourable operating environment in South Africa and disciplined execution across the group.The group said on Thursday normalised profit from operations before non-trading and capital items for the year ended March was up 22% to R1.03bn.Headline earnings per share from total operations decreased 5% to 67c, with the movement primarily reflecting base effect of the performance of the discontinued operations in the prior year rather than a deterioration in the underlying performance of continuing operations, it said. On a normalised basis, HEPS of 69c was stable year-on-year. HEPs from continuing operations was up 3% at 59.5c. Operating income increased 10% to R4.85bn, supported by higher average assets, positive investment performance, inflationary increases within its retirements client base, sustained client retention and strong new business flows reported in the investments and retail business units, it said.A final cash dividend of 33c was declared, with brought the total annual dividend to 57c, up 4% from the prior year.We are taking practical steps to strengthen Alexforbes by structuring our operations to get closer to our clients, investing in technology and keeping best advice at the heart of everything we do— Dawie de Villiers, Alexforbes CEOThe group said the corporate business delivered a stable result. “Our retirements consultants exceeded new business expectations by anticipating and responding to emergent advice needs across our institutional clients,” it said.“Our umbrella fund closed the year with assets under management (AuM) of R197.7bn. Health consulting faced competitive and pricing pressure, including the impact of lost business and the impact advisory business underperformed relative to expectations.”Investments delivered a consistently strong performance, supported by favourable markets and new business, particularly in retail and platform assets. Total closing assets increased 22% to R733.2bn.The group’s retail business continued to gain traction, with: new business up 39% year on year to R36.5bn;assets under advice up 17% to R131bn and retail AuM up 21% to R112.3bn.Alexforbes said several milestones in its retail journey were achieved, including: significant improvements to the digital platforms; and continued progress in the build out of its adviser force to 315 advisers at year end.“We have made substantial progress in simplifying our business, strengthening accountability and improving the way we serve clients,” said CEO Dawie de Villiers. “What matters more is that we are taking practical steps to strengthen Alexforbes by structuring our operations to get closer to our clients, investing in technology and keeping best advice at the heart of everything we do.” The group expects the future will continue to be shaped in moments of uncertainty. “Economic, geopolitical and regulatory developments will keep shifting the operating environment. Our confidence is not based on predicting the next shock. It is based on preparedness, disciplined execution and advice-led decision-making across the group,” it said.The group is executing a three-year group-wide initiative to establish itself as a credible and preferred investment partner for investors in South Africa. “This initiative, referred to internally as Investment Destination, is not positioned as a marketing campaign. It is a deliberate attempt to build sustained belief, demand and conversion over time by changing how the market understands and experiences Alexforbes as an investment business.”The strategy is expected to translate into measurable funded outcomes: higher-quality net inflows;improved asset retention; and a growing base of platform and product assets across institutional and retail channels. “Elements of this ambition are already visible in operating indicators. The group has continued to see strong institutional business flows, including platform assets, and retail inflows have maintained an upward trend.”Business Day
