Ninety One Plc reported a 12 percent increase in full-year adjusted operating profit as a landmark transaction with insurance giant Sanlam Limited and a recovery in investor demand helped push its total assets under management up by nearly a third.

The London- and Johannesburg-listed asset manager said its assets under management rose 31 percent to £171.8 billion ($230.8 billion) for the 12 months ended March 31. This is up from £130.8 billion ($175.5 billion) a year earlier. This followed the completion of the Sanlam transaction, which added £18.3 billion ($24.5 billion) in active asset management books.

Profit margins widen to 32 percent

The firm halted a period of client departures, recording £2.8 billion ($3.75 billion) in positive net annual inflows. This marks a shift from the £4.9 billion ($6.57 billion) in net outflows suffered during the previous financial year. The change points to renewed investor interest in the firm’s active management strategies.

“Ninety One is a resilient and robust business,” Chief Executive Officer Hendrik du Toit said in the earnings report. “The demand recovery for emerging markets is visible and our offering is competitive. We are in a stronger position than we were a year ago.”

Adjusted operating profit rose to £211.3 million ($283.5 million) from £187.9 million ($252.1 million). The adjusted operating profit margin widened to 32 percent from 31.2 percent, while profit before tax rose 2 percent to £207.5 million ($278.4 million). Ninety One proposed a full-year dividend of 13.4 pence per share.

Africa division leads global firm expansion

Equities remained the largest component of Ninety One’s business, growing 29 percent to £77.4 billion ($103.8 billion), driven by inflows into global strategies and natural resources. Fixed-income books rose 38 percent to £43.7 billion ($58.6 billion), aided by demand for blended products, while multi-asset books rose 32 percent to £27 billion.

The Africa division experienced the fastest expansion, with assets under management rising 44 percent to £80.4 billion ($107.9 billion), primarily because of local market movements and the transfer of Sanlam’s books. The Asia-Pacific region led organic growth, bringing in £3.6 billion ($4.83 billion) in net flows.

The U.K. market continued to experience pressures, posting £1.5 billion ($2.01 billion) in net outflows. While the firm secured several new client wins in Britain during the period, these gains were offset by existing institutional clients rebalancing their portfolios. Short-term performance softened, with one-year outperformance closing at 56 percent, down from 68 percent.

CEO targets efficiency, technology investments

The earnings calculations include a one-off adjustment to the adjusted earnings per share metric, which rose 12 percent to 17.4 pence. This change accounts for the new shares issued to Sanlam as part of the transaction. Looking ahead, Du Toit said the firm will maintain cost discipline while investing in technology and investment talent.