Stanlib loses R13.7bn

Picture Thinkstock

Picture Thinkstock

Liberty Holdings said its asset manager Stanlib saw net withdrawals of R13.7 billion from its money market funds in the year to December 31 after the African Bank failure hit sentiment.

Stanlib’s higher margin and retail institutional mandates attracted net inflows of R5.8 billion and R0.6 billion respectively, but that was insufficient to remedy the money market outflow.

The asset manager suffered net cash outflows, including its money market funds, of R7.3 billion. This compares with net cash inflows of R15.7 billion in 2013 and R14.3 billion in 2012.

In his Budget Speech on Wednesday, Finance Minister Nhlanhla Nene said African Bank was now generating “positive cash flows”, having been placed into curatorship in August last year due to a sea of bad debts. In his speech, Nene reiterated the assurance given to taxpayers in his mid-term budget in October that African Bank would be stabilised without recourse to taxpayer funds.

Assets under management (AUM) across the Liberty group grew a modest 4% last year to R633 billion. Results for the 2013 financial year on the other hand – described then by Liberty as “one of the best in the group’s history” – showed a 16% jump in AUM from the previous year to R611 billion.

Liberty’s BEE normalised headline earnings per share fell 3% to R1.4 billion during the year under review, after an 11% increase the previous year. This profit mea-sure excludes certain one-off items and accounts for Liberty’s black shareholder scheme.

Normalised operating earnings were up 18% to R2.6 billion (2013: +28%).

“Liberty’s South African retail operations reported a 15% increase in headline earnings to R1.7 billion, driven by continued sales momentum, particularly in single premiums, combined with positive risk, persistency and expense variances,” Liberty said in a statement yesterday.

The value of long-term insurance new business was up 12% to R7.8 billion, with net customer cash inflows for long-term insurance up 56% to R9.9 billion.

“The group’s positive performance reflects the consistent delivery on our strategy, supported by a robust governance structure that ensures the group operates within clearly defined risk appetite,” commented CEO Thabo Dloti.

Group equity value of R40 billion lifted 11% from the previous year.




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