GLOBAL - Investec Asset Management posted strong results for the year ended 31 March, 2006, as assets under management (AuM) grew over 38% to £31.7bn.
The company announced operating profit grew 63.6% to £59.4m, up from £36.3m the year before.
Investec CEO Hendrik du Toit attributed the increase to a combination of net inflows into the higher fee paying mutual funds, supportive financial markets and institutional performance fees.
“It was a satisfactory year in good conditions, although the market in the last few days has served to remind us life will not be a party forever.”
The UK operations achieved net inflows in excess of £1bn over the reporting period, while global net inflows amounted to £443m. “It was really important for us to grow the business outside of South Africa, which we did.”
CEO Hendrik du Toit singled out the company’s global equity and multi-asset teams as having performed particularly well over one, three and five years.
Global equity is something where we expect to raise significant assets out of a number of marketplaces over the next year. It is a multi-billion dollar opportunity.”
Du Toit also pointed to revenue growth from the UK and international business and continued brand reinforcement in the Asian and African markets as the key short term objectives for the company.
“Looking ahead, Investec will focus increasingly in strengthening penetration to existing markets such as Taiwan and Europe,” he said.
By Damian Clarkson
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The lifetime allowance should be scrapped and replaced with a lower annual allowance, last week's Pensions Buzz respondents said.
Action for Children Pension Fund has outsourced its pensions administration to Trafalgar House.