Patrick Cairns published an interesting article in Citywire’s weekly roundup based on the latest ASISA statistics as at the end of June.
Titled Ninety One overtakes Allan Gray as SA’s largest CIS manager, he notes that, at the end of June, Ninety One’s total assets under management (AUM) in its unit trust funds reached R315.7bn. This surpassed Allan Gray’s AUM of R302.7bn.
Since the end of June 2018, Ninety One has grown its AUM by 68.2% from R187.7bn. Over the same period, Allan Gray’s AUM has remained flat. The firm had R303.1bn under management three years ago.
Stanlib, which has surpassed Coronation Fund Managers as the third-largest CIS manager in the country, is now only marginally smaller than Allan Gray. At the end of June, it managed assets of R301.9bn. This is a 39.3% gain from its AUM of R216.8bn at 30 June 2018.
In contrast, Coronation Fund Managers has experienced much slower AUM growth over this period. From R253.4bn at the end of June 2018, the firm’s AUM grew by 8.3% to reach R274.5bn at the end of June this year.
Declining market share
Allan Gray and Coronation have both also seen a meaningful decline in their market share over the past three years.
At the end of June 2018, Allan Gray managed 12.7% of the CIS assets in the country. Coronation accounted for 10.6%.
At the end of June this year, the two firms held market shares of 10% and 9% respectively.
Over the same period, Ninety One increased its market share from 7.9% to 10.4%. Stanlib’s market share grew from 9.1% to 9.9%.
Overall, the market share held by the seven largest CIS managers in the country – the four above plus Nedgroup Investments, Old Mutual and Sanlam – has fallen only slightly from 61.9% to 60.1% over the past three years.
Nedgroup has grown its market share slightly, while Old Mutual and Sanlam have both experienced declines.
Notably, among the smaller management companies, Boutique Collective Investments has grown its market share from 2.8% to 5.1%.