The weak rand has hit Investec’s results with its asset management business seeing operating profits decreasing 9.5 per cent.
The group’s annual results released today show operating profits for asset management at £134.8m compared to £149m a year earlier.
The group, headquartered between the UK and South Africa, said overall results for the year ending 31 March had been negatively impacted by the 16.3 per cent depreciation of the average rand to sterling exchange rate.
AUM for the group decreased 2 per cent to £121.7bn, but on a currency neutral basis its AUM increased to 3.8 per cent.
Its asset management and wealth and investment divisions saw net inflows of £5.3bn, with £3.2bn of that coming from asset management.
Total funds under management in asset management were £75.7bn compared to £77.5bn a year earlier.
Chief executive Stephen Koseff says: “Wealth and investment’s increased collaboration with the private banking business is proving successful.
“Asset management have continued to see good net inflows across their client groups. Overall a good performance in a challenging environment reinforces our strategy of building a diversified business model.”