(Adds executive quote, background)
May 20 (Reuters) - Asset manager Ninety One Plc, in
its first set of results as a listed company, reported a 7% drop
in assets under management (AUM) as the coronavirus crisis
pummelled global financial markets.
AUM dropped to 103.4 billion pounds ($126.76 billion) at the
end of fiscal 2020 ended March 31 from 111.4 billion pounds a
Asset managers all over the world have posted a plunge in
AUMs as investors take a risk-off approach in light of an
impending recession after economies came to a screeching halt
during lockdowns to prevent the spread of the new coronavirus.
The company said short-term investment performance was hurt
by the extreme market correction in March this year.
"After markets were hit by the COVID-19 correction in March
2020, the situation deteriorated to the point where our
aggregate performance looked decidedly average over one and
three years," the company said.
"Value strategies had a particularly tough time."
Ninety One, which demerged from parent Investec, has been
focussing on making sure its funds have sufficient liquidity in
volatile markets, its Chief Executive Hendrik du Toit said in
($1 = 0.8157 pounds)
(Reporting by Muvija M in Bengaluru; Editing by Bernard Orr)