Investec sees record inflow

Cape Town - In the 9 months to end-December Investec Asset Management had a net inflow of almost R46bn in client funds.

The asset manager's chief executive Hendrik du Toit says it is the first time that such a large inflow has been seen over a nine-month period.

Its total assets under management at the end of December amounted to almost R500bn. This was 27% more than the R391bn at the end of March 2009.

According to Du Toit, the strategy of "internationalisation" has distinguished the asset manager from its South African competitors for the past 10 years.

Investec Asset Management is involved in the United Kingdom, Africa, Europe, Australia and Asia.

Particularly strong inflows are received from Africa, Europe and the Americas.

South Africa, which has more than half of the assets under management, also had a good year.

Du Toit is fairly optimistic that the strong net inflow is not a temporary phenomenon and expects it to continue for the entire financial year ending in March. The inflows are mostly from institutional clients such as pension funds.

Investec Asset Management is part of the Investec Group, which on Friday produced a disappointing interim management update. Du Toit says that the world of asset managers differs from that of bankers, partly because investors began to save more last year.

One of the investment trends that he has identified is the shift in economic power from West to East.

This is creating more global investment opportunities for investors in developed countries, especially the US.

- Sake24.com

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