Investec

Investec
Public company
Traded as JSE: INL, LSE: INVP
Industry Financial services
Founded Johannesburg
1974 (1974)
Headquarters London, United Kingdom
Sandton, South Africa
Key people
 Hugh Herman, Chairman,
Stephen Koseff, CEO
Products Private Banking
Capital Markets
Investment Banking
Asset Management
Property Activities
Wealth Management
Investment Management
Revenue £2,286.2 million (2017)[1]
£637.4 million (2017)[1]
£442.5 million (2017)[1]
Subsidiaries Investec plc (on LSE):
Investec Limited (on JSE):
Website www.investec.com

Investec is an international specialist banking and asset management group. It provides a range of financial products and services to a client base in three principal markets: the UK and Europe, Southern Africa, and Asia-Pacific.[2]

Investec is dual listed[3] on the London Stock Exchange[4] and the Johannesburg Stock Exchange.[5] It is a constituent of the FTSE 250 index.[6]

History

Investec was founded as a small leasing and financing company in 1974 in Johannesburg, South Africa by Larry Nestadt, Errol Grolman and Ian Kantor. It has expanded through a combination of organic growth and strategic acquisitions.[7] It secured a banking licence in 1980[8][9] and was first listed on the JSE Securities Exchange in South Africa in 1986, after merging with Metboard, a trust company. In 1988, Investec Bank Limited was restructured into Investec Group Limited ("IGL"), giving Investec Management and staff control of the company.[8]

In 1990, Investec acquired property management company I. Kuper & Company (Pty) Limited, Corporate Merchant Bank Limited (formerly Hill Samuel Merchant Bank Limited) and trade finance company Reichmans Limited.[8] Investec entered the UK market in 1992, by acquiring London-based Allied Trust Bank Limited ('ATB'), this was the first international acquisition by the Group.[8] In 1998, Investec acquired Guinness Mahon, a leading London based merchant bank, and Henderson Crosthwaite, its stockbroking arm, for £95m.[10] It also bought Hambros plc, another London based merchant bank the same year.[11] It was first listed on the London Stock Exchange in 2002.[8] In 2003 in a Black Economic Empowerment transaction empowerment partners acquired a 21.5% stake in the South Africa-listed Investec.[8]

Investec Loyal about to win the 2011 Sydney to Hobart, taken from Sandy Bay, Hobart, Tasmania, Australia

In 2005, Investec sold its UK Private Client Stockbroking operation, Carr Sheppards Crosthwaite Limited to Rensburg plc. Investec retains a 47.7% interest in the combined entity, Rensburg Sheppards plc.[12] In 2007, Investec plc acquired Kensington Group plc[13] and Experien (Pty) Ltd.[14]

Investec plc acquired the remaining shares in Rensburg Sheppards plc in 2010. This business has since been rebranded as Investec Wealth & Investments and incorporates other wealth activities previously operated through the Bank.[15]

In June 2012, Investec plc completed the €32 million acquisition of Irish brokerage firm, NCB. As a result, Investec now employs more than 240 specialists in Ireland.[16]

In September 2017 Investec acquired industrial property in Hallam, Melbourne for $22 million.[17]

Operations

Investec employs approximately 8,200 people worldwide and operates primarily in South Africa, the United Kingdom, Australia and Ireland. It also has banking operations in Switzerland, Mauritius, Guernsey, Hong Kong, Jersey, Namibia, Botswana, Canada, Taiwan and the United States.[7]

Products and divisional structure

Investec is organised as a network comprising six business divisions: Asset Management, Wealth & Investment, Property, Private Banking, Investment Banking and Capital Markets.[7]

LTI TX4 "Silver" advertising for Investec

In July 2002, Investec became the first South African company to list on both the London and Johannesburg stock exchanges, by implementing a dual listed companies (DLC) structure.[18]

The main features of the DLC structure are:

  • Investec plc and Investec Limited are separate legal entities and listings, but are bound together by contractual agreements and mechanisms.[18]
  • Investec plc is the holding company for the majority of the group's non-Southern African operations and Investec Limited is the holding company for the majority of the group's Southern African operations.[18]
  • Investec operates as if it is a single unified economic enterprise.[18]
  • Shareholders have common economic and voting interests as if Investec plc and Investec Limited were a single company.[18]
  • Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross guarantees between the companies.[18]

Empowerment in South Africa

Investec's approach to transformation within South Africa involves:

  • Fostering the creation of new black entrepreneurial platforms[19]
  • Serving as a source of empowerment financing[19]
  • Encouraging internal transformation by bringing about greater representivity in the workplace. Investec focuses on creating black entrepreneurs within its organisation[19]

Sponsorships

Cricket

Investec announced a ten-year title sponsorship of Investec Test Match cricket for the England and Wales Cricket Board on 24 November 2011 at Lord's Cricket Ground. This sponsorship, will run until 2021 and is the longest sponsorship agreement secured in ECB’s history.[20]

Rugby

Investec is involved in a number of rugby sponsorships around the world, as they feel that "rugby embodies Investec's beliefs in collaborative teamwork, innovative play and determination and it’s for these reasons that we support many rugby initiatives".[21]

Investec previously sponsored the Investec Internationals Series (formerly the Investec Challenge) played at Twickenham Stadium, England.[22]

Investec is in the third year as the sponsor of the Investec Super Rugby competition in Australia, New Zealand and South Africa.[23][24]

Investec also supports the International Rugby Academy South Africa which aims to capitalise on an untapped demand for high performance in playing and coaching rugby in South Africa.[25][26]

In 2010 Investec announced that they are the official sponsors of the Tri Nations rugby competition in New Zealand for the second year running.[27][28]

Horse racing

Investec has become a long term sponsor of The Derby festival in the UK until 2013. The illustrious horse-racing event is now known as the Investec Derby.[29][30]

Investec also sponsors the Investec Cape Derby in South Africa.[31]

Football

Investec has become the official shirt sponsor for Tottenham Hotspur's domestic cup games and UEFA Champions League games for the 2010/2011 and UEFA Europa League games for the 2011/2012 seasons. This sponsorship marked the first promotion into the football world for Investec.[32][33] In 2014, Investec became the official shirt sponsor for Widnes F.C. in the North West Counties Football League Division One.[34]

ProMaths

Since 2005 Investec has been sponsoring a flagship project started by the Kutlwanong Centre for Math, Science and Technology. The project aims at improving the mathematics and science skills of students from historically disadvantaged regions across South Africa. The project has been a huge success year on year, with most of the students obtaining distinctions in mathematics and science, and their other subjects. In 2014 the project was awarded the Mail & Guardian Investing In The Future STEM award.[35]

Other

Other sponsorships include the Nelson Mandela 90th Birthday Tribute in London's Hyde Park.[36]

Awards

The company was awarded Most Trusted Asset Management Brand, South Africa in 2016 by Global Brands Magazine Award.[37]

References

  1. 1 2 3 "Annual Report 2017" (PDF). Investec. Retrieved 26 March 2018.
  2. ↑ "About Investec". Investec.com. Retrieved 18 April 2011.
  3. ↑ "Brief Overview on the Salient Features of Investec's Dual Listed Companies Structure" (PDF). investec.com. Investec. Retrieved 22 March 2015.
  4. ↑ "London Stock Exchange Prices". Londonstockexchange.com. 29 July 2002. Retrieved 18 April 2011.
  5. ↑ "Johannesburg Stock Exchange". Jse.co.za. Retrieved 18 April 2011.
  6. ↑ "London Stock Exchange Indices". Londonstockexchange.com. Retrieved 18 April 2011.
  7. 1 2 3 "About Investec". Investec.co.uk. 18 November 2010. Retrieved 18 April 2011.
  8. 1 2 3 4 5 6 "Investec History". Archived from the original on 20 October 2007. Retrieved 18 April 2011.
  9. ↑ "Investec History (current flash applet)". Investec.com. 30 June 2010. Retrieved 18 April 2011.
  10. ↑ Investec enlarges its footprint Business Times
  11. ↑ Investec does it the niche way in London Business Times
  12. ↑ "Investec Wealth & Investment". rensburgsheppards.co.uk. Retrieved 29 March 2015.
  13. ↑ Investec buys UK's biggest sub-prime mortgage lender, The Daily Telegraph (London), 30 May 2007.
  14. ↑ Investec's Australia move Sydney Morning Herald, 19 May 2008.
  15. ↑ Investec buys Rensburg for £412 million Archived 27 February 2012 at the Wayback Machine., London Evening Standard, 30 March 2010.
  16. ↑ Investec completes NCB takeover, Daily Business Post, 12 June 2012.
  17. ↑ "Investec Acquires Hallam Industrial Site in $22 Million Deal - TheUrbanDeveloper.com". TheUrbanDeveloper.com. 19 September 2017. Retrieved 28 September 2017.
  18. 1 2 3 4 5 6 "Structure and management". Investec. Retrieved 18 April 2011.
  19. 1 2 3 Financial Sector Charter Report
  20. ↑ "Investec Test Cricket". Investec.co.uk. 31 March 2011. Retrieved 18 April 2011.
  21. ↑ "Why Investec sponsors the rugby". Investec.co.uk. 31 March 2011. Retrieved 18 April 2011.
  22. ↑ "Rugby Football Union". Clubs.rfu.com. Retrieved 18 April 2011.
  23. ↑ "About the Super 14". Super14.com. Sports Digital Media. Retrieved 18 April 2011.
  24. ↑ "Investec Super 14". Investec.co.uk. 30 January 2011. Retrieved 18 April 2011.
  25. ↑ International Rugby Academy South Africa Archived 22 August 2009 at the Wayback Machine.
  26. ↑ "Investec International Rugby Academy". Investec.co.za. 9 April 2010. Retrieved 18 April 2011.
  27. ↑ "Investec Tri Nations". Investec.com.au. 22 February 2011. Retrieved 18 April 2011.
  28. ↑ "Investec Tri Nations analysis – New Zealand". Allblacks.com. 28 August 2009. Retrieved 18 April 2011.
  29. ↑ "Epsom Downs Racecourse". Epsom Downs Racecourse. 5 June 2010. Retrieved 18 April 2011.
  30. ↑ "Investec Derby Official Webpage". Investec.co.uk. 22 October 2010. Retrieved 18 April 2011.
  31. ↑ Investec Cape Derby will be a thriller Archived 20 February 2010 at the Wayback Machine.
  32. ↑ "News Archive - tottenhamhotspur.com". tottenhamhotspur.com. Retrieved 29 March 2015.
  33. ↑ "Tottenham Hotspur name Investec as second shirt sponsor". BBC News. Retrieved 29 March 2015.
  34. ↑ "Widnes Football Club announces new shirt sponsorship with Investec". Widnes F.C. Retrieved 14 August 2014.
  35. ↑ "Higher maths produces pros". Mail & Guardian. 1 November 2013. Retrieved 10 February 2015.
  36. ↑ "News – Nelson Mandela Foundation". nelsonmandela.org. Retrieved 29 March 2015.
  37. ↑ "Global Brands Magazine Award 2016 winners". Retrieved 16 September 2016.
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