{"id":827328,"date":"2025-06-09T09:44:29","date_gmt":"2025-06-09T07:44:29","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=827328"},"modified":"2025-06-09T10:00:41","modified_gmt":"2025-06-09T08:00:41","slug":"alexforbes-scores-big-as-it-hits-r600-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/827328\/alexforbes-scores-big-as-it-hits-r600-billion\/","title":{"rendered":"Alexforbes scores big as it hits R600 billion"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

The group’s operating income jumped by 13% to R4.4 billion, partly due to a strong investment performance.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

“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.<\/p>\n\n\n\n

“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.”<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

Financials<\/strong> <\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

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.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

The board also declared a gross special dividend of 10 cents per share, with both dividends coming from income reserves. <\/p>\n\n\n\n

The board believes that the cash and capital positon means that the group will have sufficient liquidity following the payment of the dividend. <\/p>\n\n\n\n

Financials<\/strong><\/td>2024<\/strong><\/td>2025<\/strong><\/td>% Change<\/strong><\/td><\/tr>
Basic earnings per share (cents)<\/td>54.7<\/td>70.8<\/td>+29%<\/td><\/tr>
Headline earnings per share (cents)<\/td>61.5<\/td>70.8<\/td>+15%<\/td><\/tr>
Annual dividend per share (cents)<\/td>50.0<\/td>55.0<\/td>+10%<\/td><\/tr>
Special dividend per share (cents)<\/td>60.0<\/td>10.0<\/td>–<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"

Alexforbes has seen a massive rise in its assets under management and administration, with the group’s topline benefitting from high two-pot claims.<\/p>\n","protected":false},"author":95,"featured_media":812785,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[16778],"class_list":["post-827328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-alexforbes"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/827328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=827328"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/827328\/revisions"}],"predecessor-version":[{"id":827366,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/827328\/revisions\/827366"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812785"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=827328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=827328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=827328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}