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As a group, Investec, which is well-known for its sponsorship of English Test cricket, provides a diverse range of financial products and services. These include specialist banking, wealth and investment, and asset management.
Investec serves a niche client-base in three principal markets, the United Kingdom, South Africa and Australia - as well as certain other geographical locations.
Investec Asset Management currently manage £29 Billion of client savings in a range of their UK and offshore investment funds. They have 28 main UK based OEIC funds, 40 main offshore funds and 1 investment trust that are available to UK consumer investors.
Investec Wealth & Investment (IW&I), the UK based arm of the organisation, is a leading investment manager, delivering services to individuals, charities, trusts and clients of financial advisers.
IW&I is currently managing £30.5 billion of client assets.
IW&I in its current form has resulted from the merging of Rensburg Sheppards and Williams de Broë, combined with the strength of the Investec group, creating a strong business.
IW&I offers a broad range of comprehensive investment services, delivered by knowledgeable and experienced professionals.
We reviewed Investec's funds and found a lack of consistency and poor performance from a large selection of their funds, in particular their range of UK based OEIC funds. None of these have managed to maintain consistent top quartile performance in their respective sectors over the most recent 1, 3 & 5 year periods.
Investec's UK OEIC funds also have entry fees averaging 4.5% and ongoing annual fees that can exceed 3%.
With the poor and inconsistent performance of their funds combined with their relatively high charges, UK-based investors who currently invest or are considering investing with Investec may be better served looking at other fund and fund manager options.
Investec do state that the entry fee for certain share classes from their OEIC range of funds is currently being waived.
Investec's offshore funds, which hold 62% of the £29 Billion under their management, currently have entry fees of up to 10% and ongoing annual fees that can exceed 3% - meaning expat investors are also being poorly served.
Investec Wealth & Investment has worked closely with financial advisers for almost 25 years, and claims to construct bespoke portfolios, and will consider implementing alternative investment strategies and asset allocations to meet specific requirements.
IW&I’s investment managers employ a group-wide investment process, one that ensures a structured and disciplined approach, which we do like.
Their independent research department and experienced investment managers are organised into specialist teams to focus on three core areas: asset allocation, stock and sector allocation, and collective funds.
The Asset Allocation Committee meets monthly to formulate the recommended split between assets to be held in client portfolios, and discuss which areas to invest in geographically.
They consider trends in global economies, interest rates and currencies, and appraise forecasts for corporate profits and dividends.
The Stock Sector Committee meets regularly to review changes in core list UK equities, to initiate changes in sector views, and to confirm - or question - changes in sector or stock recommendations.
The purpose behind this is to maintain an analytically driven process, without losing the ability of analysts or strategists to make timely, tactical calls.
Whilst to a degree this makes sense, it does add a layer of risk, because timing and tactics can be got wrong, which can potentially impact returns significantly.
The Collectives Committee meets regularly to review changes in the core collectives list, and respond to developments in fund performance, valuation or manager turnover.
The Master Portfolio Service is for those with less capital to invest, and comprises six pre-defined model portfolios, each carefully structured to reflect certain investment objectives and attitudes to risk.
All investments are in collective funds, instead of individual shares, with each model portfolio providing diversified exposure to the global financial markets across the main asset classes of: equities, fixed interest, commercial property, alternative property, alternative investments and cash.
The portfolios contain: unit trusts, investment trusts, open-ended investment companies (OEICs) and ETFs/Trackers.
Mandates range from Defensive to High Growth.
Fees and charges depend on the service opted for.
We have outlined below the basic charges for Bespoke Discretionary Portfolio Management and the Master Portfolio Service.
We highlight that these are IW&I’s charges, BUT BE CAREFUL - your adviser is likely to charge between 1% and 1.5% on top, and there may also be wrapper charges of over 1% that you will be paying.
First £1m of portfolio value: 1.25%
Next £1.5m: 1.00%
Next £2.5m: 0.75%
Dealing charges of £35 applied to each transaction.
Master Portfolio Service Annual Management Fee.
Flat 0.85% plus VAT on value of portfolio charged quarterly.
I disagree with your 3 star rating - I've found the charges info from Investec totally confusing. When I query something I've read I usually get a different answer completely as well - as a result my relationship with them has broken down.
You'd think paying someone to look after your money would mean you wouldn't need to keep an eye on it. Not the case with Investec. They've let me down.
Whilst Investec is a respected name, and they provide a range of actively managed discretionary fund manager DFM solutions, we believe that there are better and more cost-effective alternatives available for you.
If you already have a Discretionary Managed Portfolio with IW&I, and it is worth £50,000 or more, we recommend you get a X-Ray Review™ conducted to give you the information you need to make a decision on the best way forward.