Fund manager Ninety One, formerly Investec Asset Management, has reported full year pre-tax profits up by 11% to £198.5m but Assets Under Management down 7% to £103.4bn.

In its first results under its new Ninety One identity the company said it had seen a year of “meaningful progress” as an independent investment manager with 21% employee ownership.

The company warned, however, of "tough times ahead" and forecast lower revenue. It said "cost discipline" would be key.

Ninety One demerged from the Investec group earlier this year and part floated in March.

During the year the company saw net inflows of £6bn, similar to the previous year.

The company said that short term investment performance had been hit by the market correction in March as the Coronavirus spread around the world.

In response to Covid-19 the company said it made the wellbeing of its 1,100 staff a priority and did not furlough employees or make any redundant. It also donated £2.9m to relief efforts.

Hendrik du Toit, founder and chief executive, said: “Last year was a momentous year for Ninety One. We ended our twenty-ninth year in business with record earnings, a quality client base from across the world, highly motivated people and an experienced leadership team, but were challenged by the consequences of the Covid-19 pandemic.

“During the last month of the 2020 financial year, we successfully demerged from Investec, listed on the London and Johannesburg Stock Exchanges, and rebranded as Ninety One. Significantly, all staff are now shareholders and the people who work in the firm collectively own more than 21% of the equity of Ninety One. This was a pivotal period in the evolution of our business.

“These developments took place in the face of extreme market volatility and weakened economic prospects, which we expect to endure for some time. The resilience of our people and technology enabled us to provide all our clients with uninterrupted service and intensified engagement. We successfully facilitated remote working for our staff to ensure their wellbeing just days after the demerger and listing.”