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6 tweets,
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1/ Investec: Most interesting part of the results is trying to glean some info on the Asset Management biz which will be spun out later this year. It looks good to me.
2/ Investec AM: AUM increased by 7.3% to £111.4bn with net inflows of £6.1bn. Inflows were well divided between SA and UK. This is good for the geographic spread. We've seen how Coro has struggled to grow its international biz, so it's not easy to establish.
3/ Investec AM: Operating Profit was up slightly (+0.7%), impacted by lower performance fees in SA, new London premises & regulatory costs. A credible result in what has been a difficult year for all asset managers.
4/ Investec AM: Operating margin of 31.3% compares well to Quilter at 30% and it will improve if performance fees pick up to any extent.
5/ Investec AM: Trading at 1.27x tangible book. This implies a very low valuation for the Asset Mgt biz. AM appears to be trading at a Price-to-AUM of only 1.2[*] vs Coronation at 3.1% and Quilter at 2.5%.
[*]=my calc only, treat with extreme caution
[*]=my calc only, treat with extreme caution
6/ Investec chart looks promising. My target price is R102 (£5.60) with good potential to R105.
