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Investec Wealth profits rise 35%

Investec Wealth & Investment’s operating profit increased by 35 per cent to £30.8m in the six months to 30 September, up from £22.9m for the same period last year.

The firm attributes this growth to improved operating margins and inflows of £400m with total funds under management now at £40bn.

But the figure represents a decline from March when total funds under management for IW&I was £40.4bn.

Investec Asset Management saw a 6.8 per cent increase in operating profit from £67.4m to £71.9m.

Despite net inflows of £1.4bn in the six months to the end of September, total funds under management registered a fall of 5 per cent from £69.8bn to £66.2bn.

Investec managing director Bernard Kantor says: “We are showing good growth in the vast majority of our businesses, and where growth is not in line with our expectations, we are tackling those issues head on.

“Our aim is to ensure we focus, build and expand the areas where we have core competencies that can generate appropriate shareholder returns across our business. We will effectively deal with those businesses that cannot deliver decent returns.”

Alexander Sloan Financial Planning managing director Colin Rodger says: “Investec has taken on teams from other asset managers so to an extent it has benefited at the expense of others.

“Overall, Investec seems to be progressing through successful product launches, hires and increased distribution.”

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