The specialist bank reported its asset management division as a whole – which covers the UK and other regions and South Africa - had recorded net inflows of £2.9bn in the period to bring total funds under management to £70.1bn. However, this is down on the £77.5bn recorded at the end of March.
It noted: “Earnings were impacted by market and currency volatility and lower performance fees in South Africa.”
Meanwhile Investec’s Wealth & Investment division globally recorded net inflows across the businesses of £1.1bn to bring total funds under management to £43.4bn, down from £46.1bn in March.
But while the parent company’s specialist banking division helped push the overall operating profit up by 16.1 per cent, the Wealth & Investment division’s operating profit decreased by 0.5 per cent and asset management’s operating profit declined 8 per cent in the period.
In the UK and other region, however, the asset management business recorded a small increase in operating profit in the six months to £40.1m compared with £37.7m in the same period in 2014. But the Wealth & Investment business in the UK and other region saw profit slip to £25.9m in the six months compared with the £26.9m recorded in 2014.
Investec noted in the results: “Overall performance of the global business is marginally behind the prior period due to investment expenditure on growth initiatives, particularly in the UK business. These initiatives should support an increase in operating margin in the medium term.”
Stephen Koseff, chief executive of Investec, said: “Our investment to digitise and internationalise the Wealth & Investment operation will place it on a strong footing to continue its growth trajectory, whilst good net inflows demonstrate the resilience and diversification of our Asset Management franchise. We are well placed to continue our growth despite the Rand weakness and market volatility.”
Bernard Kantor, managing director of Investec, added: “The strength of our Asset Management and Wealth & Investment franchises supported solid net inflows, notwithstanding challenging market conditions. Investec continues to position its core businesses for sustained growth in its principal markets.”