Ninety One: more than a name change

Mark Samuelson and Justin Cowper
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The former Investec Asset Management, from today (March 16) to be known as ‘Ninety One’, created its own font for the new name. This is very rare in marketing and publishing circles. It gets our attention. But it also signifies a lot more than a marketing effort. Ninety One lists today (March 16 AEST) as a separate entity from Investec Group, the bank.

For those of us in the media, the font – or ‘typography’ – is an important statement. (Note the photo with Mark Samuelson and Justin Cowper.) For most companies, you’d just borrow one of the standard offerings for a new logo. ‘Ninety One’ went the extra mile and created its own font. It says a bit more about the changes at the firm than just a name change. There are added benefits which will also boost the clients’ interests, the manager believes.

Mark Samuelson, the managing director for Asia Pacific and the Middle East, who has been with the firm for 29 years, says that Ninety One has always been separated from the parent investment bank to a certain extent. “We set up in Cape Town whereas the bank was always headquartered in Johannesburg,” he says. “We grew up inside the bank but we were always seen to be independent… Since 2013 the management and staff started to own a piece of our business.”

This is probably the biggest part of the new attraction for clients as well as staff. The alignment of interests is very important, particularly in the institutional space. Staff have 20 per cent of the about-to-be listed company. They have actually bought the shares, too, with their bonuses or other money. They weren’t handed to them on a platter. The listing of a separate Ninety One is due to take place from tomorrow (March 17) it is a dual listing in Johannesburg and London.

As with the creation of the font, there are other elements of the funds management business which gives it greater independence. There is another 10 per cent coming the way of staff and management. The current 20 per cent is currently held through a trust and therefore reduces the likelihood of a liquidity event without the agreement of the majority of management and staff. “We don’t need any extra capital,” Samuelson says. “But if we do, for an acquisition or some other business opportunity, we have the ability to do so.”

Justin Cowper, Ninety One’s Australia country head, said that everyone was aligned with the changes to the business. The culture was the same “up and down the business” but the new name had been “very positively received” by clients and advisors and potential new clients, as well as staff, he said. “We are nopw controlling our own destiny. We can’t be taken over unless we want to be so… Everyone is in alignment.”

He says that Ninety One has just launched a new Australian-domiciled unit trust for its emerging markets equity strategy. There had been many discussions around China ‘A’ shares investments, he says. “We have about 45 people in Hong Kong focused on this market. It may be a bit volatile, but it probably represents the biggest segment of the future of emerging markets.”

Samuelson says that the private markets space is also important for the manager. “We will probably look at raising our portfolio there and also expand in that area. We already have a couple of PE funds which are focused on Africa.”

Ninety One represents the year – 1991 – that the asset manager was launched in South Africa as a subsidiary business of Investec, the bank. Perhaps they could have named it ‘2020’, the year that it became truly independent. But what’s in a name?

– G.B.

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