InvestecSep 23 2021

Investec funds up 9% amid growth prediction

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Investec funds up 9% amid growth prediction
Waldo Swiegers/Bloomberg

Investec’s UK wealth and investment business saw its funds under management grow 9 per cent in the five months to August as the firm predicts 125 per cent growth in profits for the half year. 

In a trading update to the stock exchange this morning (September 23), the group said UK FUM rose to £45.4bn with net inflows of £0.6bn, compared with £37.7bn in the same period last year.

The firm added it expects adjusted operating profit for the UK business for the six months to the end of September to be at least 125 per cent higher than the figure for the first six months of 2020, which was £43.4m.

Fani Titi, group chief executive, said the group’s trading performance for the five months to August was substantially ahead of the same period last year, and in line with the pre-Covid comparative period in 2019.

“This recovery in performance underscores the resilience of our client franchises, supported by improved economic conditions. Based on current business momentum, we have raised our earnings guidance for FY2022,” he said.

“The changes made to simplify and focus the group are bearing fruit, positioning the group well for the future. As Covid restrictions ease, we look forward to growth alongside our clients and increased face to face engagement, which is core to our values and culture.”

The firm has seen some significant changes in its UK business this year.

In August the group's wealth and investment division appointed an internal senior fund selection specialist as its chief investment officer, tasked with overseeing the creation of the Investment and Research Office.

Stacey Parrinder-Johnson, who joined Investec in 2005, will lead the development of the unit, which brings together Investec's portfolio construction and research teams.

Parrinder-Johnson initially joined the firm as a member of its Leeds discretionary desk, before moving to the research team in 2013.

She has managed portfolios in the UK and South African business and the firm said she has been a key figure in developing the group’s ESG and sustainability offering.

In June this year the firm combined its financial planning and wealth planning services into a new advice arm.

It appointed co-heads Michelle Holgate and Sarfraz Hafeji to lead the wealth advisory business.

At the time, Investec Wealth’s chief commercial officer, Barbara-Ann King, who was appointed to the role in October 2020, said: “We’re proud to be announcing two internal candidates to take up these important roles, showcasing the wealth of skilled, diverse people we have within our teams.