Investec assets fall, but profits rise

Profits upAssets under management at Investec Wealth & Investment are down slightly on last year to £45.5 billion (€59.4 billion) from £46.1 billion, despite net inflows of £2.1 billion over this time.

The company’s annual results at March 31 also show operating profit increased 8.8% to £85.7 million.

In December 2015, Investec revealed it had suffered a £3 billion dip in assets and a resulting decline in operating profit, but the firm attributed that to investment in a number of growth initiatives.

Among these initiatives is the company's planned online discretionary service, Click & Invest, which is slated for an autumn launch after originally targeting a fourth quarter 2015 roll-out.

Investec Asset Management, the asset management unit of the firm, also saw its assets under management decline, again despite net inflows of £3.2 billion. Overall, managed assets now stand at £75.7 billion, having fallen from £77.5 billion. Operating profits also experienced a decrease of 9.5% from £149 million to £134.8 million.

Investec chief executive Stephen Koseff nonetheless remained positive about the firm’s asset management division, noting continued positive flows, and attributing poor performance to emerging markets exposure and a volatile start to the year.

At a group level, Investec's operating profit increased 0.6% to £583.9 million. However third-party assets under management decreased 2% to £121.7 billion.

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