The investment firm said it has received all key regulatory approvals for its demerger, and is targeting a dual listing in London and Johannesburg during the first quarter next year. Investec Asset Management confirmed its plans to publicly list as part of a restructure in September last year.

“The plans for our firm’s listing in the first quarter of next year are well in advanced, including the adoption of our new name,” the board of Investec Asset Management said in a statement. “We have chosen a name with a strong connection to our heritage, that feels authentic to who we are and will help us to stand out in a competitive market.”

The new name references Investec Asset Management’s founding in 1991. Under the rebrand, the firm will also no longer the Investec zebra branding as it seeks to build a new identity upon its demerger from Investec Group.

Investec Asset Management also confirmed its leadership team in August this year, with Hendrick du Toit to return as CEO of the firm at the time of listing, and John Green and Domenico Ferrini to assume deputy CEO roles.

The South African bank said when outlining plans to demerge Investec Asset Management that it found ‘limited synergies’ between the Specialist Banking and Wealth & Investment businesses and the asset management unit following a business review. The Specialist Banking and Wealth & Investment businesses will remain part of the Group’s current structure, but as an independently listed company the asset management segment would be better positioned for growth, the firm said.

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The South African bank said in a statement that a strategic review of the company found ‘limited synergies’ between the Specialist Banking and Wealth & Investment businesses and the asset management unit.

Under the restructure, the Specialist Banking and Wealth & Investment businesses will remain part of the Group’s current structure, but as an independently listed company the asset management segment would be better positioned for growth.

Henrick Du Toit, who currently leads the asset management business at Investec and is due to become co-CEO of the Group alongside Fani Titi next month, will head up the spun-off unit following its listing.

At the same time, the current Group chief executive, Stephen Koseff, and Bernard Kantor, who is a managing director at Investec, will leave the firm.

“We are confident that the proposed demerger and listing of IAM (Investec Asset Management) provides the simplicity of structure and focus to enhance the long-term prospects of IAM and the remaining Group for the benefit of our shareholders, clients and employees,” Du Toit and Titi jointly commented.

“Investec has a heritage and culture of which we are proud, shaped by the dedication and commitment of our employees and the support of our clients. We look forward to working closely as Joint Group CEOs during this phase of our evolution and to implement this transaction which we expect will create significant shareholder value over time.”

Koseff and Kantor added that the individual businesses are well-positioned strategically with strong market positions and good prospects, and the time is right to demerge the asset management unit to support the next phase of the Group’s development.

“In recent years we have also made good progress in expanding our banking and wealth management franchises in our two key markets and improving their operational and financial performance,” they concluded. “We believe the transaction will allow these businesses to fulfil their full potential and shareholders will benefit from future value creation through direct ownership of two separately listed companies.”

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Three of Investec’s founding members will step down from their roles as of October this year after almost 40 years with the South African bank and asset manager.

Chief executive officer Stephen Koseff, managing director Bernard Kantor, and risk and finance director Glynn Burger, are considered founding members of Investec having steered the group since the 1980s.

A statement from Investec explained Koseff and Kantor will serve as executive directors as of April 2019, continuing to provide support and advice to incoming executives.

Burger will retire on 31 March 2019, but will assume the role of non-executive director on certain subsidiary and associate boards.

“When we joined Investec almost 40 years ago we aspired to develop a leading financial services group focused on our clients’ needs,” Koseff said. “We have worked with most of our senior management team for over 20 years and we are very proud of what we have accomplished as a team.”

Fani Titi and Hendrick du Toit have been appointed co-CEOs and will become jointly responsible for the leadership and management of Investec from October 2018.

“The board is confident that Fani and Hendrick, together with senior management, will continue to grow and build Investec’s core businesses and deliver the right outcomes for the group’s clients and stakeholders,” Investec said in the statement.

Titi has been a non-executive director on the Investec Group board since January 2004 and chairman of the group since November 2011. Toit is the founding CEO of Investec Asset Management and will remain in this position until 30 September 2018 to oversee the transition period.

The current chief operating officer and chief financial officer of Investec Asset Management, Kim McFarland, is to take over as group finance director as part of the leadership reshuffle from April 2019.

The statement concluded with comment from the newly appointed joint CEOs, which said: “On behalf of the board, we would like to thank Stephen, Bernard and Glynn for their long standing commitment and invaluable contribution to the development of the group.

“Under their stewardship, Investec has grown from its origins as a small finance company founded in South Africa in 1974 into an international specialist bank and asset manager, entrusted with more than £150 billion of clients’ funds and more than £50 billion of on-balance sheet assets.”

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Jonathan Lee, head of credit trading, Hermes Investment Management

Having first joined Hermes Investment Management in 2011 as a trading intern, Jonathan Lee has truly left his mark on the £30 billion asset manager. Shortly after his internship, Lee took on a permanent role as an assistant portfolio manager, before moving on to the fixed income trading desk as a dealer. He was promoted earlier this year and now heads up credit trading at Hermes.

Craig McLeod, head of fixed income dealing, Investec Asset Management

Craig McLeod began his career with Standard Life Investments in Edinburgh, working as an OTC derivatives analyst for two years, before he swapped roles to become a credit trader in 2008. From there, McLeod spent a year as a quantitative portfolio manager and finally departed Standard Life Investments to relocate to United Arab Emirates. He joined the Abu Dhabi Investment Authority as a trader in 2012 before moving back to London in 2016 for a more senior role at another asset management firm. McLeod is now head of fixed income and FX trading at Investec Asset Management.

Joeri Wouters, buy-side dealer, KBC Asset Management

As a senior fixed income dealer at KBC Asset Management, Wouters has built up extensive career expensive throughout his 11 years with the firm. He works on the centralised dealing desk executing bonds, listed and OTC cleared derivatives trades for portfolio managers across various European countries like Poland, Belgium and Czech Republic. Wouters has become a face of the industry, speaking at industry conferences like the Fixed Income Leaders Summit, discussing execution management systems, transaction cost analysis and electronic trading.

Anne-Kirstine Moller, portfolio manager, Legal & General Investment Management

Anne-Kirstine Moller started her career on the sell-side after completing a summer internship in credit derivatives trading at Goldman Sachs in 2006. She joined Goldman Sachs permanently two years later and become an interest rate swaps traders for more than three years. In 2011, Moller joined Legal & General (L&G) investment Management as a Liability Driven Investment (LDI) portfolio manager in active fixed income. She has now been with L&G for more than six years. 

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A handful of major buy- and sell-side firms have opted for MarketAxess’s post-trade reporting service developed by Trax, ahead of tougher rules on trade and transaction reporting.

A number of banks and asset managers will use Trax’s approved publication arrangement (APA) and approved reporting mechanism (ARM) services ahead of MiFID II.

These include Crédit Agricole, Goldman Sachs, ING Bank, Investec Asset Management, Janus Henderson, Jupiter Asset Management, Martin Currie Investment Management, Mizuho International and Santander, which have joined both or one of the services provided by Trax.

Head of Trax, Chris Smith, commented regulatory reporting expertise and flexible technology are becoming key differentiators for market participants dealing with MiFID II.

The new reporting regime will mark a significant breakaway for buy-side firms, which have in the past relied on their sell-side broker relationships for reporting.

“Buy-side firms are increasingly looking to Trax for our cross-asset class trade and transaction reporting capabilities, serving as a one-stop shop for helping them meet their regulatory obligations,” he said.

Trax claimed of the top 20 global asset managers, those that have selected Trax for MiFID II reporting services represent approximately 67% of the total assets under management.

Simon Clements, global head of investment operations at Janus Henderson, explained the firm chose Trax because it met key criteria of cost, functionality and innovation.

“We were particularly attracted by their additional MiFID II services, which should help reduce our reporting burden under the new regulations and further improve our operating efficiencies, for the ultimate benefit of the business and our clients,” he said.

Trax said its clients have been actively testing their readiness with Trax Insight to ensure compliance with reporting requirements under MiFID II on 3 January next year. 

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