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REVIEW SUMMARY

Investec

Investec was founded in Johannesburg, South Africa, in 1974.

Today, Investec is publicly traded in London and Johannesburg and staffed by 8,700 employees across its core geographies of the UK and South Africa, along with other locations across the globe.

Investec serves a niche client-base in three principal markets, the United Kingdom, South Africa and Australia - as well as certain other geographical locations.

In March 2020, the Investec Asset Management business was demerged and separately listed as Ninety One. Investec shareholders received one Ninety One share for every two Investec shares held.

Overview
FAQ
Customer Reviews
Expert Verdict

Investec's discretionary managed investment service is said to be flexible and built around clients’ individual preferences and specific investment goals. It can also be applied to joint or sole accounts, ISAs and trust assets.

Once the adviser agrees on the most suitable mandate with the client, their portfolio will be actively managed on a discretionary basis by Investec.

The investment management services offered by the Investec are mainly of two types:

  1. Discretionary fund management
  2. Managed portfolio service on platforms

1. Discretionary fund management:

Whether the adviser's clients are individuals, trusts, charities or companies, a dedicated investment manager from Investec will work closely with them to create and manage portfolios. 

Each client receives quarterly valuations detailing the performance of their portfolio, and a clear breakdown of the costs and charges involved with managing their investments. They'll also be able to view their portfolio's performance online, 24/7.

Investec says that their discretionary fund management service can be applied to almost any investment structure, including:

  • Joint and sole accounts
  • ISAs
  • Trust assets
  • Charities
  • Companies

Their DFM services are available for portfolios greater than £150,000.

2. Managed portfolio service:

Investec claims to offer the lowest AMC (Annual Management Cost) for their managed portfolio service.

Investec has developed five different investment strategies, enabling the adviser to choose the most appropriate one for an individual client’s needs and attitude to risk. These are:

  • Defensive strategy
  • Cautious strategy
  • Balanced strategy
  • Growth strategy
  • Income strategy

Investec's managed portfolio service on platforms is intended for investments below £150,000.

NOTE:

  • 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.
  • 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.
  • We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

 

The Pros

> Strong brand
> Good administration
> Online access

The Cons

> Can be very expensive
> Active methodology is academically questionable
> Inconsistent fund performance
Does Investec offer bespoke discretionary portfolio management?

Investec has worked closely with financial advisers for almost 25 years, and claims to construct bespoke portfolios.

They also consider implementing alternative investment strategies and asset allocations to meet specific requirements.

Is Investec regulated?

Investec (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Registered at 30 Gresham Street, London EC2V 7QP.

Does Investec help in mapping out a clients risk appetite as part of their DFM service?

Ideally, the financial adviser maps out a clients risk appetite. However, in exceptional circumstances, advisers may seek to defer the responsibility for mapping their client’s risk outcomes to a suitable investment mandate (level of portfolio risk and objectives) to Investec.

This can be accommodated, subject to prior agreement from Investec and is dependent upon sufficient information being made available by the adviser both initially and in the future. 

Charges are opaque

I've found the charges information from Investec totally confusing.

Whenever I ask them about something I've read about it they give me a completely different answer.

Expert assessment of Investec

Investec is a well-known brand and has worked closely with financial advisers for over 25 years - but their offering is expensive and they are not positioned to help international professionals.

If you already have a Discretionary Managed Portfolio with Investec, and it is worth £250,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want.

Investec - Managed Portfolio Service Brochure

Investec - Investment Management Services Brochure

Investec - Adviser Partnerships Process

Investec - Managing Investments Brochure

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