Welcomed split boosts stock
Investec announced it would be splitting its asset management and banking businesses into two separately listed businesses. The market liked the news, pushing the stock up almost 10%. This would certainly seem to be a good value unlock. This trend is similar to the process Old Mutual has been going through. Financial institutions seem to be focusing on a single, core competency. With a global footprint and assets under management (AUM) of some £109bn, the Investec asset management side of the business certainly looks attractive and I am waiting for more details ahead of the split.