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.

©2016 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST