Fall in investment returns puts pressure on Sanlam
Sanlam has suffered a 6% drop in full-year normalised headline earnings to R8.4bn, let down by the significant decline in net investment returns, which was compounded by a stronger rand. The stronger local currency knocked more than R5bn off the rand-based valuations of the group’s operations outside the home market and Namibia, the financial services group said on Thursday in a statement. The effect of the weak equity markets on assets under management and related fee income was even more pronounced at the wealth management business given the larger exposure to equities in its underlying portfolios. "These businesses have done well to limit the decline in their operational earnings to only 4% under these conditions. This was achieved through diligent cost management and success in attracting higher margin retail flows," the company said. Net operating profit from financial services was up 10% to R8bn in year to end-December from the year-earlier period, with all businesses contribu...
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