UK - Investec Asset Management reported a 57% rise in operating profits, to £21.8m, in the six months to 30 September.
This profit growth climbed higher, to 58.4% with the exclusion of discontinued operations.
Funds under management grew by 18.2% to £27.1bn with increased new net inflows of £494m since 31 March 2005.
CEO Hendrik du Toit (pictured) said institutional money had been “pretty important” in terms of the growth of Investec’s business.
“If we adjust for a very large insurance account, which is in structural outflow, then institutional business would probably account for roughly a third of net inflow,” he said.
He added the firm was looking to expand in the Far East region, particularly in Taiwan.
“We’ve been seeing significant interest from there in our global product and also in our higher yielding fixed income product,” he said. “That institutional market is starting to open. We’ve largely been focusing on retail funds there but we are starting to see invitations to very large [institutional] accounts so we hope to strengthen that business in the second half.”
The firm has grown from scratch in 1991 to have £27.1bn under management at 30 September.
Profit growth was attributed to a 63.6% increase in net inflows, a more than 50% increase in the performance fee component, tight cost control and stronger financial markets compared with the previous period.
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