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Investec funds arm hits £100bn as it gears up for new era

Investec funds arm hits £100bn as it gears up for new era

Investec's asset management business has hit £100 billion for the first time as its new bosses prepare to take command. 

The South African firm announced the landmark in a trading update covering the 12 months to the end of March. Assets under management rose from £95.3 billion to £103.9 billion. 

The group attributed the increase to higher average funds under management on the back of net inflows of £5.4 billion, alongside favourable market and currency movements.

Asset management profit rose by 8% to £178 million. 

Meanwhile, Investec Wealth & Investment registered a net inflow of £2 billion in the 12 months to March 2018. Profit in the division jumped by 5.7% to £98.6 billion, while total funds under management increased from £54.8 billion to £56 billion. 

The news comes after it was announced in February that its founding trio, Stephen Koseff (CEO), Bernard Kantor (managing director) and Glynn Burger (risk and finance director), will retire from their executive roles over the course of the next year, 40 years after establishing the businesses. 

Hendrik du Toit (pictured), founding CEO of Investec Asset Management and Fani Titi, non-executive chairman of Investec plc and Investec Ltd since November 2011, will assume the role of joint CEO from 1 October 2018

Commenting on his last set of full-year numbers, Koseff said: 'Operating performance during the year was underpinned by sound growth in loans and funds under management and a solid recurring income base, despite a challenging backdrop in South Africa and the UK. 

'We have implemented an orderly succession plan and feel confident that we are handing over a business that is well placed to continue to grow both its market position and profitability over the foreseeable future.' 

Kantor added: 'Over the last 40 years we have been building a platform that is capable of being leveraged for further growth. Investec is now a meaningful player across many business areas, both in the UK and South Africa, and we believe the platform is robust, relevant and well positioned for future value creation.

'We are confident that Hendrik du Toit and Fani Titi, as joint chief executives from October, will lead Investec to new successes for the benefit of shareholders and all our stakeholders.' 

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