Investec Plc · LSE:INVP
Investec — Investec Wealth & Investment (UK) — Corporate Update (April 2024)
14 slides from Investec's corporate update, Apr 30, 2024
Slide 1: AIM IHT update Q1 24
AIM IHT update Q1 24 30th April 2024 This presentation is intended for professional advisers only. Our AIM IHT service is a high risk, long-term investment. 1 Investec 2022
Slide 2: Investec AIM IHT Plan highlights
Investec AIM IHT Plan highlights 5.5% 75% £671m Strong return of the risk of the market leading proposition performance over 10 years in AIM The Plan has 21-year track record The standard deviation The second largest AIM IHT provider of strong performance. The average (volatility) of our annual retu
Slide 3: Our philosophy
Our philosophy • Experienced management team • 5 years trading and quoted for at least a year Investing in Quality FTSE AIM AIM IHT plan Allshare* Relative • Distinctive capabilities Gross Margin 44% 21% 23% • Proven financial track record Return on Capital Employed 17% 11% 6% with dividends FCF yie
Slide 4: Update on AIM plan Q1 24
Update on AIM plan Q1 24 Investec 2022
Slide 5: AIM Portfolio IHT plan Q1 24
AIM Portfolio IHT plan Q1 24 Performance against benchmarks (total returns) IW&I calculates performance based on actual average client Period / benchmark 10 yrs 5 yrs 3 yrs 1 yr Q1 24 returns after all our fees IHT Planner clients 38.5% -5.0% -20.9% 1.5% -3.4% Comparison with modelled or sampled ret
Slide 6: AIM IHT market drivers Q1 24
AIM IHT market drivers Q1 24 • Mattioli Woods has been the best absolute performer for the IW&I - Top Overall Contributors Index Index AIM IHT plan contributing EPIC Stock name Weighting Performance Contribution weighting contribution Difference 83bps, following the bid by PE. MTW-LON Mattioli Woods
Slide 7: Smart Indices
Smart Indices Internal Indices - Cumulative Performance since 31/03/21 1.5 • IW&I using our strict philosophy emphasises that our quality continues to outperform 1.3 1.0 • Smart AIM – AIM All Share with companies that we believe would not qualify for BR screened out. 0.8 0.5 • Non-qualifying stocks
Slide 8: AIM IHT Plan company valuations
AIM IHT Plan company valuations IHT Planner p/e multiple - 10 year record 35.0 30.0 10 year average - 22.1 25.0 15% discount to 10 year average 20.0 Current PE 18.8x 15.0 10.0 Source: Factset and Investec Wealth and Investment 8 Confidential | Investec Wealth & Investment (UK)
Slide 9: Long term returns record
Long term returns record Performance against benchmarks (total returns) Average annual return IW&I AIM IHT AIM Allshare FTAS Since Q1 2007 7.9% 2.7% 6.6% Last 10 yrs 5.5% 3.0% 6.2% Last 5 yrs -0.5% -1.0% 5.6% Standard deviation (volatility) of annual return IW&I AIM IHT AIM Allshare FTAS Since Q1 20
Slide 10: Power of the 40% IHT tax break
Power of the 40% IHT tax break Post Global financial Crisis, haven’t seen any rolling 2 2 year returns restated by quarter year period which has been below the 40% IHT tax saving 125.00% 75.00% Still continues to achieve goal of passing more assets on to beneficiaries 25.00% Q4 08 Q4 09 Q4 10 Q4 11
Slide 11: Fund flows drive returns!
Fund flows drive returns! UK Smaller Companies 400 25 One of the main reasons why 300 AIM stocks have 20 200 underperformed other indices over the past few Funds under management 100 15 years. Total sales 0 10 -100 30 months of redemptions -200 from the UK Smaller 5 Companies space -300 -400 0 Total
Slide 12: Why AIM/Smaller companies now?
Why AIM/Smaller companies now? Valuation remains attractive M&A is prevalent, 2023 was an active year for PE/Overseas buyers of UK small cap Declining inflation and downwards route of travel for interest rates Regulatory changes / UK smallers are significant employers and need support Marginal buyer
Slide 13: Thank you
Thank you 13 Confidential | Investec Wealth & Investment (UK)
Slide 14: Please note that the value of investments and the income derived from them may fluctuate
Please note that the value of investments and the income derived from them may fluctuate and investors may not receive back the amount originally invested. Past performance of an investment is no guide to its performance in the future. Current tax levels and reliefs may change and the investments an
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