Investec Asset Management inflows of £1.1bn boost profit

Investec Asset Management inflows of £1.1bn boost profit

The half year results of Investec Group showed the asset management division, including both the UK and South Africa, increased profit by 16.6 per cent to £82.3m in the period to September 30 2016. 

Investec attributed the increase to higher than average funds under management, which reached £89.8bn up from £75.7bn at the end of March 2016, and “supported by a recovery in equity markets and net inflows of £1.1bn”. 

A breakdown of the unaudited results shows the UK and other section of the asset management business accounted for more than half of the division’s profit, as the UK’s operating profit increased to £43.1m in the six months, up 7.4 per cent from the £40.1m recorded in the same period in 2015. 

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Meanwhile Investec’s Wealth & Investment business also benefited from higher funds under management, increasing from £45.5bn to £51.3bn in the six months.

In addition total operating profit in the Wealth & Investment business increased 14.1 per cent to £43.2m, with the UK portion accounting for £29.2m, up from £25.9m in the same period in 2015. 

Stephen Koseff, chief executive officer of Investec, commented: “These results show the long term strength and diversity of our business, delivering sustainable recurring client-driven income streams amidst high levels of macro uncertainty. We are pleased with the growth in net interest income and fees and commissions, as well as good fund management inflows. We continue to invest with confidence in our business to build even stronger franchises."