Anchor grows its managed funds

Wealth management firm Anchor Group grew its funds under management by almost a fifth in 2019 despite investors ditching equities for safer assets. Anchor, which reported its full-year results to December on Friday, managed to grow its funds under management by 17% to R57.4bn.

Wealth management firm Anchor Group grew its funds under management by almost a fifth in 2019 despite investors ditching equities for safer assets.

Anchor, which reported its full-year results to December on Friday, managed to grow its funds under management by 17% to R57.4bn. Adjusted headline earnings were down 9% to R69.4m for the period.

Anchor, headed by Peter Armitage, said it saw record demand for fixed-income assets, which include securities such as bonds, during its year to endDecember, with this weighing on its profit margins.

Independent analyst Anthony Clark said the group’s financial performance was astonishing given widespread turmoil across global markets.

“Given the environment we’ve seen in the last six months and significant declines in the valuation of JSE stocks, as well as the trading capacity of clients, people have not been trading as much.

“The fact that they’ve managed to grow their assets under management by 17% is astonishing,” Clark said.

“In a weak economic environment, in a weak stock market, to actually curtail a drop in earnings by 9% is actually a very good scenario,” he said.

R8.47bn Anchor Group’s growth in net assets under management and administration

DIFFICULT ENVIRONMENT

The company said it was experiencing the most difficult investment environment in decades, with economic confidence and market sentiment at low levels, all made worse by the coronavirus outbreak.

It said net assets under management and administration grew R8.47bn, including the R2bn contract termination for the deconsolidation of Astoria Investments.

For private clients and asset management, the company added about 2,000 new clients. Funds under management were R35.4bn and assets under advice stood at R22bn. Offshore assets were R16bn.

Anchor group, whose longterm strategy is to become a key player in SA’s asset and wealth management market, is looking at strengthening its focus on offshore investment.