Interim Results 2021
Today, STANLIB’s parent company, Liberty Holdings, announced its financial results for the six months to end-June 2021. Commenting on STANLIB’s performance for the same period, CEO Derrick Msibi said:
“This latest set of results reflects another consistent performance from STANLIB in the face of a challenging operating environment. We remain responsible custodians of the business and have continued to deliver a series of incremental improvements, as promised to our stakeholders. The ongoing credible build-up to our results has allowed STANLIB to deliver organic growth and contain costs below inflation.”
“STANLIB remains financially resilient and well positioned to deliver on its strategic long-term goals. Our approach remains dynamic yet prudent and we continue to invest in the business to improve the client service experience and ensure continued investment performance.”
For the year ended 30 June 2021, STANLIB headline earnings of R242 million reflect higher fee income due mainly to higher assets under management (AUM) in 2021. AUM increased to R652 billion on the back of positive financial market movements.
External net client cash flow recorded positive flows from retail collective investments, segregated funds and LISP. Despite a difficult operating environment, costs were maintained below budget and inflation.
Our investment performance over longer-term horizons remains credible, with certain STANLIB core retail funds delivering first and second quartile performances. Overall, our performance is on a strong trajectory, and we remain steadfast in our investment philosophy and processes.
Our strategic direction, which is framed around fostering a future-fit asset manager, remains unchanged. We will continue to deliver against our strategic goals in responding to the needs of a new investment era, characterised by a cost-effective and digitally-enabled operating model, with client-centric servicing.
In terms of the proposed acquisition of Liberty by the Standard Bank, STANLIB considers that the transaction represents a natural progression of the strategic and highly valuable relationship we have enjoyed with Standard Bank to date. We regard this development as a strong vote of confidence in STANLIB’s asset management capabilities and its people.