Investec sees Asia opportunities

Singapore

OPTIMISM over the potential of Asia as an investment market has spurred Investec Asset Management to build a presence in Singapore. The South Africa-based firm incorporated a Singapore office in 2012 and obtained a fund management licence this year. At the moment it has 19 funds marketed through intermediaries. It has chosen to site fixed income capabilities here, where it has so far eight staff. Andre Roux, co-head of emerging market fixed income, is based here.

Hendrik du Toit, Investec chief executive, said: "In asset management, the next five years is about building a base to capture the Asian growth story that will unfold in the next decade as populations age quickly and lots of capital is mobilised and allocated institutionally or professionally."

Investec was founded some 25 years ago, and assets grew to US$40 million in the first year. Today, it has assets under management of about US$110 billion.

About half of the firm's assets are invested in the emerging markets. "People like to write off emerging markets. It's not a standard place to park money when you don't want to take risks. But they do bounce back and returns are pretty good . . . We can't walk away from developed markets because we want to be a global investment platform, but we shouldn't be scared of emerging markets. We started in one."

Investec's capabilities span equities, fixed income, multi-asset and alternative investments. Investments tend to be driven by bottom-up analyses.