Alexforbes scores big as it hits R600 billion

Investment firm Alexforbes’ assets under management and administration were just shy of R600 billion in its most recent financial statements for the year ended 31 March 2025.

The group’s operating income jumped by 13% to R4.4 billion, partly due to a strong investment performance.

It was also underpinned by positive market growth that resulted in higher average assets under management and inflationary increases across its client base and high client retention.

The group’s total assets under management (AuM) and administration (AuA) closed at R599 billion, marking a 14% year-on-year increase. New institutional business flows for the year amounted to R35 billion.

The institutional product offering, AuM, grew by 11%. In contrast, the platform administration offering, AuA, grew by 26%, resulting in total institutional asset growth of 15% over the year to a closing value of R492 billion.

New retail business flows increased by 34% to R28 billion, which includes R2.2 billion in assets under advice for the newly launched discretionary fund management product, Investment Solutions by Alexforbes.

Closing retail assets under advisement are up 12% year-on-year, reaching R112 billion. Retail assets under management are also up 11% year-on-year to reach R107 billion.

Moreover, the group’s top line benefited from the consolidation of acquisitions in the previous financial years and higher-than-expected two-pot claims volumes.

“With the implementation of the two-pot system taking effect on 1 September 2024, members of retirement funds were able to access a portion of their fund credits,” said the group.

“Alexforbes anticipates that the two-pot system will improve retirement outcomes for new members by up to 2.5 times on average over the long term.”

Although there were large volumes of withdrawals in the first month of the legislation, the months thereafter have seen lower levels of withdrawals and have reached a consistent monthly withdrawal level by year-end.

From September 2024 to March 2025, close to 500,000 savings pot claims were processed, amounting to a cumulative gross withdrawal of R7.7 billion.

R5.5 billion was from Alexforbes portfolios, AuM and AuA, with 95% of the payments processed within standard servicing levels despite the added level of complexity. 

Financials

The group’s profit from operations increased 14% to R911 million. Cash generated from contining operations was strong at R1,230 million, up 15% year on year.

Its profit for the year from contininuing operations also improved 28% to R745 million, which was due to a decrease in non-trading and capital items.

The group’s headline earnings per share from total operations increased 15% to 70.8 cents per share, with the group stating that the increase reflects the financial performance of the discontinued
operations.

The group said that its balance sheet remains robust, supported by sustained cash flow from continuing operations, with the group having available cash of R700 million.

The group thus declared a final cash dividend of 33 cents per share, increasing its total dividend for the year by 10% to 55 cents per share.

The board also declared a gross special dividend of 10 cents per share, with both dividends coming from income reserves.

The board believes that the cash and capital positon means that the group will have sufficient liquidity following the payment of the dividend.