Investec’s funds under management (FUM) dropped to £59bn at the end of September from £63.8bn recorded in March, with the firm attributing the 7.6% fall to the overall decline in global markets.
The wealth manager also announced a £350m share purchase and buyback scheme to be carried out over the next 18 months.
Despite the FUM drop, Investec recorded net inflows of £202m. This was mainly carried by the discretionary side of the business, which drew in a net £464m of client cash, while its non-discretionary side saw £261m in net outflows.
Operating profit jumped to £435.2m, a 29.5% increase on the £366m recorded in the same six month period in the previous financial year, while revenue rose 18.9% as the firm said it benefitted from “rising global interest rates, client acquisition and strong asset quality”.
Fani Titi, Investec Group chief executive, said: “The group’s earnings growth momentum continued, underpinned by strong revenues from our diversified client franchises and a focused approach to support our clients. We achieved adjusted earnings per share of 32.9p, a 25.1% improvement on the prior period, and at the top end of the previous guidance.”
The Investec board has proposed a dividend of 13.5p per share, up from 11p in H1 2022.
As of 11am, Investec shares were down 3.3% from the opening price of £4.62.