Alexforbes saw assets under management and administration grow 22% to R733 billion in the year ended March 31, 2026, supported by favourable markets and exceptional new business, particularly in retail and platform assets.
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In a year marked by resilience, Alexander Forbes Group Holdings reported a steady final dividend of 33 cents per share for the financial year ending March 31, despite normalised headline earnings per share remaining unchanged at 69 cents.
The company’s performance for the year reflects strategic execution and growth, bolstered by underlying operational successes. The performance was supported by favourable markets and exceptional new business, particularly in retail and platform assets.
The operating income increased by 10% to reach R4.85 billion, and normalised profit from operations soared by 22% to R1.03bn.
However, headline earnings per share from total operations saw a 5% dip, recording 67 cents per share. This decline primarily emerged from the performance of discontinued operations in the previous year, rather than any deterioration in the quality of ongoing operations.
Alexforbes CEO Dawie de Villiers expressed optimism, stating, “This has been another solid year of performance for Alexforbes, including being recognised as South Africa's best asset manager. We delivered strong growth in operating income and a 22% increase in normalised profit, while maintaining a robust balance sheet and high levels of client retention.”
The company’s total assets under administration surged to R733bn, with a burgeoning clientele of more than 1,3 million members. Such growth underscores the firm's commitment to enhancing its service delivery, simplifying operations, and honing a customer-centric approach.
Investment performance was robust, particularly within the retail and platform assets sectors, where new business inflows accounted for a remarkable 39% increase year-on-year, totaling R36.5bn.
Retail assets under advice also rose by 17% to R131bn, with retail assets under management increasing by 21% to R112.3bn.
“These results reflect strong institutional business flows and sustained retail inflows, validating our investment proposition,” De Villiers noted.
Amidst the backdrop of a complex operating environment, the corporate business delivered stable results, led by retirement consultants who proactively addressed new business needs among institutional clients. The administration teams efficiently managed heightened transaction volumes, with a noted reduction in two pot claims and related fees from the previous year.
While operating expenses increased by 9% to R3.85bn, the growth rate was significantly moderated when accounting for adjustments related to the long-term incentive scheme and previous year IFRS 16 effects, suggesting a more robust underlying operating performance.
Future investments in technology, including a significant upgrade of the major administration system, emphasise the focus on operational efficiencies and enhancing client experience.
Furthermore, Alexander Forbes is embracing artificial intelligence (AI) as a foundational enabler of productivity and insight. The group has outlined a structured framework for AI implementation to ensure accountability and compliance, focusing on streamlining operations and strengthening decision-making processes.
Looking ahead, Alexander Forbes is prioritizing sustainability and developing strategies to guide clients through the evolving regulatory landscape. The introduction of the Alexforbes One funding solution aims to consolidate employee benefits under one umbrella, supporting better decision-making for employers and members alike.
As the group embarks on a three-year ambition to enhance net inflows, improve asset retention and foster growth across its service channels, the commitment to delivering high-quality advice and sustainable outcomes remains at the forefront of its mission.
BUSINESS REPORT