The asset manager has no representative in the hugely popular UK Equity Income sector for instance, but its best regarded managers are performing very well in more specialist areas of the market.
The Investec Smaller Companies fund is arguably the group’s strongest performer of recent years. Data from FE Analytics shows that it has consistently been in the top-decile over a five and ten year period. The portfolio, which is headed up by Philip Rodrigs, has returned 304 per cent over the last decade – a figure that has only been matched by FE Alpha Manager Giles Hargreaves’ Marlborough Special Situations fund.
Performance of fund versus sector over 10-yrs
Source: FE Analytics
Rodrigs, who has been running the portfolio since July 2006, is one of four FE Alpha Managers at Investec. His approach is primarily bottom-up and the manager seeks companies with a history of creating share-holder value.
The Investec Cautious Managed fund is another of the group’s flagship offerings. Industry stalwart Alistair Mundy heads up the £2.2bn portfolio. He describes his approach as contrarian and follows the Investec style of trying to be different from the herd.
Mundy’s approach focuses on finding assets which are both out-of-favour and cheap relative to the rest of the market.
Our data shows that the fund has returned 83.68 per cent compared to 48.58 per cent from the average fund in IMA Mixed Investment 20%-60% Shares.
Performance of fund versus sector over 10-yrs
Source: FE Analytics
FE Alpha Manager Peter Eerdmans runs the Investec Emerging Markets Local Currency Debt fund, regarded by leading IFAs as the best of its kind.
The fund looks to benefit from healthy state finances, low budget deficits and well capitalised banks in the emerging world but currency plays have also added to returns.
Over the last five years it has returned 99.85 per cent, more than any other fund in the Global Bonds sector.
The stellar performance has seen assets under management (AUM) grow to more than £2bn.
The Commodities sector is another area that Investec has been identified with in more recent years. With the exception of the much more volatile Smith & Williamson Global Gold & Resources, the Investec Global Gold fund has the best record of all the gold-focused portfolios in the IMA universe since its launch in April 2006, with returns of 76.62 per cent.
Performance of funds since April 2006
Source: FE Analytics
Investec Enhanced Natural Resources has also had a very good run, outperforming the vast majority of its peers since its launch in May 2008. FE Alpha Manager Bradley George’s portfolio is one of the very few natural resources funds that can short a large portion of its assets.
Commenting on the lack of income options under the management of Investec, managing director David Aird says that the group deliberately avoids the ‘me too’ attitude which has led to an over-concentrated market of closet trackers.
“If we were to launch of an income fund, it would have to be something very different than what’s on the market at the moment,” he said.
In an interview with FE Trustnet, Aird hinted the group may look to launch a multi-asset income portfolio in the near future, under the guidance of FE Alpha Manager Philip Saunders.