Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a703553
Investec Wealth & Investment performance 'well ahead' on improving margins
by Sarah Miloudi on Sep 17, 2013 at 11:06
Investec's Wealth & Investment division is performing 'well ahead' of the previous year.
Thanks to improving margins and growth in funds under management, Investec used a brief pre-close statement to announce that net inflows to its wealth arm had totalled £0.3 billion for the six months to the end of August.
Total funds under management were posted at £36.7 billion at the end of September 2012 and by 31 August 2013 they had climbed to £39.4 billion.
Investec Plc said its numbers were up year on year and while across the group its operating profit was set to come down, its Wealth & Investment division was performing solidly and margins were 'beginning to improve'.
No doubt this will come as a welcome sign given the pressures discretionaries are facing, largely from increasing regulation and rising operating costs.
According to a study by the Boston Consulting Group, the global wealth management sector endured a 10 basis point (bps) fall in profit margins from 2007 to an average of 23bps in 2012.
This was accompanied by a 19% rise in cost-to-income ratios to 73% over the same period, due to increased back-office costs and declining front-office costs.
News sponsored by:
Today's top headlines
More about this:
Look up the shares
More from us
- XO time bomb: Is execution-only guidance getting too close to advice?
- Execution only assets hit £103bn record
- squeeze on margins
On the road
by James Phillipps on Dec 09, 2013 at 07:52