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| Investment Solutions |
The group’s multi-manager
investment subsidiary, Investment Solutions, recorded
23% revenue growth in its African operations.
There was even stronger growth in the trading
result, up 29% to R264 million resulting from
the operational gearing which is integral to the
Investment Solutions’ business model. The
business benefited from strong equity market growth
and further net new business inflows, which totalled
R3 billion for the year. Relative investment performance
continued to be competitive with most portfolios
in line with, or ahead of, their benchmarks.
Over the past, year a number of milestones were
reached by Investment Solutions, which contributed
to this business’ continued success.
Assets under management exceeded R114 billion
at 31 March 2006, representing an increase of
37% over the year. Average assets for the current
year were R97 billion which was a 33% increase
over the previous year.
The product range in South Africa now consists
of 371 investible portfolios and Investment Solutions
has the widest range of investment portfolios
available for clients in the South African marketplace.
Returns throughout the product range have been
competitive in both absolute and relative terms.
Our relationship with Stanlib Multi-Manager continues
to strengthen, with assets having grown to R11,9
billion. We have renegotiated and altered the
planned share swap arrangement to a long-term
multi-manager investment contract.
The UK Investment Solutions business, started
in 2003, continued to attract new clients with
assets under management doubling to £890
million at 31 March 2006. This business continues
to gather momentum as it approaches £1 billion
of assets under management, with a competitive
3-year investment performance track record; a
key milestone for the business. The trading loss
recorded by the business reflects the continued
investment made in growing both the infrastructure
and client and asset bases of this business.
In both South Africa and the United Kingdom, Investment
Solutions has managed to attract excellent new
talent into the business over the year, including
Imtiaz Ahmed as South African chief investment
officer and John Green as UK chief investment
officer.
Management continues to focus on ensuring that
the business continues to grow into the future
and has accordingly put a number of strategies
in place. |
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| Africa Investment
Solutions |
|
Income from operations |
Trading results |
March
2006
Rm |
% |
March
2005
Rm |
March
2006
Rm |
% |
March
2005
Rm |
|
761 |
+23 |
617 |
264 |
+29 |
204 |
|
Assets under multi-management (AUM)
|
| Closing AUM
|
R114
billion |
+37 |
R83 billion |
| Average AUM
|
R97 billion |
+33 |
R73 billion
|
|
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 |
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| International
Investment Solutions |
|
Income from operations |
Trading results |
March
2006
£m |
% |
March
2005
£m |
March
2006
£m |
% |
March
2005
£m |
|
5,6 |
+60 |
3,5 |
(0,7) |
(250)
|
(0,2)
|
|
Assets under multi-management (AUM)
|
| Closing AUM |
£890 million |
+99 |
£448 million |
| Average AUM |
£667 million |
+108
|
£320
million |
|
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|
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