How much you would have if you invested R1,000 in Coronation, Ninety One, Momentum and more at the start of 2024

South Africa’s largest asset managers have seen mixed performances on the JSE since the start of the year, with Momentum leading the competition.

South Africa’s stock market has seen a strong year, with many investors encouraged by the Government of National Unity, declining inflation and the interest rate cutting cycle.

Financial services providers have been some of the largest benefactors, which includes

Of the companies where asset management is a key driver of revenue, the Momentum Group’s share price has seen the best performance on the JSE since the start of the year, seeing a 39.94% year-to-date increase.

In a trading update for the year quarter ended 30 September 2024, Momentum’s sales, as measured by the present value of new business premiums (PVNBP), increased by 5% to R20.7 billion on a year-on-year basis.

The group said that the overall growth was supported by continued growth in life annuities and new business volumes from Momentum Investments.

In second place is Coronation, which saw a 29.47% increase in 2024 thus far.

Coronation has seen a substantial rise in its earnings, with total assets under management (AUM) growing by 11% to R667 billion.

The group beat the South African Revenue Service at the Constitutional Court after the taxman accused Coronation of underestimating the taxes owed from its Irish subsidiary. After its win, it was able to declare a special dividend of 153 cents per share to shareholders.

South Africa’s largest insurer Sanlam completed the top three, seeing 23.46% growth over the year – just beating PSG and Sygnia, which also saw growth of 20% over the last year.

Sanlam’s asset management business is set to undergo a massive shift.

As per a proposed transaction, Ninety One will acquire all the issued shares in Sanlam Investment Management Proprietary Limited (SIM), which is an active investment management business wholly owned by Sanlam Investment Holdings Limited (SIH), in which the broader Sanlam Group holds an effective 65.6% interest.

Sanlam is also appointing Ninety One as the permanent investment manager to manage assets for Sanlam Investments UK Limited (SI UK), which is a wholly owned subsidiary of the Sanlam Group.

The two businesses owned by Sanlam, which have a combined R400 billion in assets under management, will be moved to Ninety One.

Ninety One, which has operations in South Africa and the UK, already has assets under management of £127.4 billion (R2.9 trillion).

Sanlam will also be the anchor investor in Ninety One’s international private and specialist credit strategies that meet its investment requirements.

Ninety One believes that the agreement, which is subject to necessary approvals, will boost its market leadership position in South Africa.

This comes amidst a slight hit in Ninety One’s results in the six months that ended on 30 September 2024.

“During this reporting period, Ninety One benefited from positive performance in equity and bond markets. Demand for risk-on strategies, especially in emerging markets, remained muted. This affected our ability to produce new business at historic rates,” said Ninety One CEO Hendrik du Toit.

Following a 12% drop in basic and headline earnings per share to 7.8 pence (R1.79), the group also decreased its interim dividend by 8% to 5.4 pence (R1.24).

The company’s share price has not been spared, losing 13.16% since the start of the year.

The performance of South Africa’s

Some of South Africa’s largest asset managers Stanlib, Liberty and Nedgroup Investments are not included as their parent companies are primarly focused on other activities. Other major investment companies, such as Allan Gray, are not listed on the JSE

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