Anchor Group assets rise by 3% in first quarter
JSE-LISTED financial services holding company, Anchor Group, said yesterday that its assets under management and administration increased by 3 percent in the first quarter as it experienced strong inflows, a weaker rand and higher brokerage revenue.
In the quarter to end March its assets rose to R59.2 billion, up from R57.4bn compared to the quarter to end December 2019, but were offset by the decline in equity markets.
“Inflows for the first quarter have been in excess of R3bn while adjusted headline earnings per share are in line with management’s expectations for the first quarter,” the group said.
However, Anchor said business conditions in South Africa have changed dramatically in the past few months due to the Covid-19 outbreak.
“We are still in the early stage of understanding the impact of Covid-19 on the global economy, financial markets and the timing thereof. Anchor has reacted proactively with a focus on the preservation of client wealth, client communication and identification of new opportunities,” the group said.
Anchor’s board would continue to monitor the impact of the pandemic on the business and communicate with shareholders as circumstances changed. Anchor has three primary divisions: private clients, asset management and stockbroking with a long-term strategy to become a major player in South African asset management, with an increasing focus on offshore investment. The group said this would be achieved by both organic and acquisitive growth.
Anchor reported that it had a strong balance sheet, boosting of cash and investments of R123 million as at the end of December 2019 and approved facilities of R45m at the end of March.
During the first quarter to end March, Anchor said its ongoing turnover of the business was 10 percent higher than the comparable period last year, which excluded the once-off termination fee earned by the company in respect to the Astoria investment management agreement during February 2019.
Anchor Group’s share price closed 3.33 percent higher at R3.10 on the JSE yesterday.