EasyEquities Blog

Alexforbes: Quietly Compounding, Confidently Growing?

Written by EasyAssetManagement | Jul 17, 2025 7:15:00 AM

Explore how Alexforbes achieved strong, recurring revenue and scalable growth in FY2025. More from EasyAssetManagement's report below.

Summary

  • Strong FY2025 Results: Alexander Forbes reported R5.65bn in revenue, R911m in profit, and R1.23bn in cash from operations, with solid margin expansion.

  • Segment Strength: Its investments division leads the way, backed by retirement, healthcare, and individual consulting arms.

  • Retail Growth & Scale: R27.9bn in new retail business and digital adviser tools scaling.

Alexander Forbes may not grab headlines, but in the world of long-term wealth and retirement planning, it plays a central role. The company sits at the heart of South Africa’s savings ecosystem, guiding institutions and individuals through the often-complex terrain of pensions, healthcare, investments, and financial advice.

FY2025 was a year of disciplined execution, where the business leaned into its strengths: fee-based income, scalable platforms, and a trusted name in an increasingly consolidated industry.

Recurring Revenue, Trusted Advice

Alexander Forbes earns its money by charging for services that sit at the heart of long-term financial wellbeing. These include investment management, retirement fund administration, financial advice, and healthcare consulting. Much of its income comes in the form of recurring fees, tied to the size of assets under management and administration or long-standing contracts with institutions and individuals.

In FY2025, that translated to revenue of R5.65 billion, profit from operations of over R911 million, and cash from continuing operations of over R1.2 billion. A solid year across the board.

Segment Breakdown: Where the Money Comes From


Source: AFGH Annual Results Presentation 31 March 2025

Investments

This is the group’s profit engine. It runs South Africa’s largest multi-manager platform. Total assets under management and administration closed at R599 billion. The segment benefits from strong operating leverage, more assets generally means more fees, without costs scaling linearly.

  • FY25 revenue: R2.68 billion

  • Operating Income: R1.82 billion

Retirement Consulting

Provides administration, actuarial support, and advisory services to corporate retirement funds and umbrella structures.

  • FY25 revenue: R1.41 billion

  • Operating Income: R1.36 billion

Healthcare Consulting

Supports employers and employees in structuring medical aid and health benefit solutions. A regulated but dependable income stream, with consistent year-on-year delivery.

  • FY25 revenue: R379 million

  • Operating Income: R371 million

Individual Consulting

Helps individuals plan and manage their wealth, advised investments, retirement products, and discretionary investments. This is a growing part of the business, supported by adviser expansion and digital platforms.

  • FY25 revenue: R752 million

  • Operating income: R461 million

Multinational Consulting

Operates in Botswana, Namibia, Nigeria, and the Channel Islands, supporting international clients with benefit and investment strategies. Smaller in scale, but strategically valuable.

  • FY25 revenue: R429 million

  • Operating Income: R386 million

FY25: A Year of Solid Execution


Source:
AFGH Annual Results Presentation 31 March 2025

In many ways, FY2025 was a year of steady compounding for Alexander Forbes.

Alexander Forbes delivered another strong financial year, marked by solid earnings, resilient margins, and healthy shareholder returns.

Key Numbers

  • Operating income up 13% to R4.4 billion

  • Profit from operations up 14% to R911 million

  • Cash generated from operations up 15% to R1.23 billion

  • Normalised HEPS up 23% to 69.1 cents

  • Total assets under management and administration up 14% to R599 billion

What Drove It

  • Market gains, higher average AUM, and recurring fee growth across investments and consulting segments

  • High client retention and volume uplift from the new two-pot retirement system

  • Organic operating costs increased just 6%

Alexander Forbes continues to show how a fee-based, platform-centric model can quietly compound even in a complex environment.

A Core Part of South Africa’s Retirement System

Alexander Forbes is one of the largest providers in the country’s retirement space, administering pensions and investment assets for hundreds of thousands of members. Its umbrella offerings hold over R164 billion in assets and continue to gain traction as employers consolidate benefit structures.


Source:GraySwan Umbrella Fund Default Survey 31 March 2025

Expanding Into Individual Services

Alexander Forbes is accelerating its push into the retail market, with FY25 marking a clear shift in focus. The business now oversees R112.3 billion in assets under advisement (+12%) and R107 billion AUM (+11%) within Alexforbes retail investments. Total retail new business surged 34% to R27.9 billion, reflecting strong demand for individual services.

These achievements reflect the success of Alexander Forbes’ individualisation strategy, launched two years ago to personalise advice at scale. The approach combines deeper member engagement, digital advice tools, and a growing pool of quality advisers, now 279 strong.

Another enabler has been the integration of Alexforbes Invest (formerly OUTvest), which is now fully embedded into the adviser network and offers a world-class, DIY investment platform. As adoption grows, the group is well-positioned to expand its reach across both advised and direct retail channels.

A Platform with Room to Run

One of the most encouraging signs in FY25 was margin expansion, lifted by efficiency gains and scale benefits. This is where Alexander Forbes has an edge. It doesn’t need to chase high-risk growth. With scalable platforms, sticky clients, and a recurring fee base, it can grow earnings simply by running a little leaner and a little bigger each year.

Final Word

Alexander Forbes is staying the course, executing on its strengths, scaling up smartly, and delivering consistent results. FY2025 showed what that discipline looks like in numbers: higher profits, strong cash flow, and a clear strategy for future growth.

The challenges are real. Mature markets, tight competition, and economic headwinds, but this is a business built for the long haul. And right now, it’s growing nicely, just as you’d expect it to.

Looking to Diversify?

EasyAssetMangement is actively monitoring Alexander Forbes in line with our EasyETFs Balanced Actively Managed ETF  Strategy. If you are looking for exposure to global or AI themed equities check out our EasyETFs Global Equity Actively Managed ETF and our EasyETFs AI World Actively Managed ETF.

Discover more insights in our blogs



Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an employee of EasyEquities an authorised FSP (FSP no 22588) as general market commentary and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.