European Union

An overwhelming majority (92%) of property professionals said they would either maintain or increase their allocation to UK commercial property over the coming year according to a new study by Investec Private Bank’s Structured Property Finance division.¹

The private equity industry has long been credited with hiring superior talent to buy, run and sell companies. The pressure on returns, and the fact that superior returns are driven largely by the decisions made by the people at the private equity firm, means that General Partners are required to focus heavily on their own teams, ensuring they employ and retain the most talented individuals available.

New research¹ from Investec Specialist Private Bank and the Entrepreneurs’ Organization amongst some of Britain’s most successful entrepreneurs, reveals that 77% are looking to secure funds in the UK during 2010, but 59% believe this will be difficult to do, and a further 15% expect it to be very hard.

An overwhelming majority (92%) of property professionals said they would either maintain or increase their allocation to UK commercial property over the coming year according to a new study by Investec Private Bank’s Structured Property Finance division.¹ See the graphs below for the full set of results.

- Investec’s Business High 5 Account pays the average of the five highest savings business accounts. Its current rate is 2.19%² Gross AER³

Investec Private Bank’s Private Equity Partner and Fund Finance team has provided a structured loan to Encore Ventures, a new division of DFJ Espirit, the top-tier European venture capital firm.

- UK adults plan to spend over £4 billion on subscriptions to clubs and societies during 2010¹
- Almost a third of cash deposit accounts targeted at clubs and associations paying interest of 0.1% Gross AER or less²
- The Investec Business High 5 Account always pays the average of the five highest savings business accounts.³ Its current rate is 2.19%³ Gross AER⁴

Investec Private Bank Growth & Acquisition Finance has provided a revolving finance facility and acquisition finance term loan to allow the management of Odgers Berndtson, one of the UK's leading headhunting firms, to acquire a majority (50.5%) interest in the business from its parent company OPD Group plc. OPD will continue to hold the remaining interest in the business.

- US dollar Investec Horizon Account pays 1.36% AER¹ (1.35% gross²)

- Average bonus paid on savings accounts for balances of £25,000 or more is 1.82%, according to Investec’s latest Savings Index
- The Investec High 5 Account is currently paying 3.32¹ gross AER², 2.82% higher than the Bank of England base rate

New research¹ from Investec Specialist Private Bank and the Entrepreneurs’ Organization amongst some of Britain’s most successful entrepreneurs, reveals growing optimism about the UK economy. For example, some 88% expect revenue from their UK businesses to increase in 2010, with only 4% expecting it to fall.

- UK adults claim to have donated a total of £5.32 billion to charities during 2009¹
- The Investec Business High 5 Account aimed at charities always pays the average of the five highest savings business accounts.² Its current rate is 2.44%² Gross AER³
- 33% of cash deposit accounts targeted at charities pay 0.1% Gross AER or less⁴

- But Investec warns savers to be aware of short-term, headline grabbing rates
- Between 1 August 2009 and 31 October 2009 the average returns from savings accounts on balances of £25,000 was just 0.86% (av. without bonus)
- The Investec High 5 account is currently paying 3.30%¹ gross AER², 2.80% higher than the Bank of England base rate

- Just 1% of accounts offer higher rate tax payers a real rate of return on savings
- Higher rate tax payers need to earn 3.17% or more for a ‘real return’ on deposits
- The Investec High 5 Account is this week paying 3.34%¹ gross AER²

- 14% of SIPP and 12% of SSAS investors receive the Bank of England base rate or less on their cash deposits
- The Investec Pension and Trust Reserve Account currently pays 2.50% gross AER for balances of £100,000

New research¹ from Investec Private Bank demonstrates how few banks and building societies offer consistently competitive rates for business savers.

- 83% of GPs expect to receive carried interest from current funds
- 37% of GPs anticipate that their next fund will be bigger than their current one
- 80% expect the economy to improve or remain the same over next 12 months
- Main priority for GPs over next 12 months is to ensure good management of existing portfolio companies

Investec Private Bank’s Business High 5 Account has paid a consistently high rate since its launch in July 2009. Indeed, the rate has never fallen below 2.31%¹ gross AER² and is currently 2.50%¹ gross AER², 2% above the Bank of England base rate.

By Charles Batchelor (Financial Times journalist)

From the stuccoed villas of Kensington to the leafy Surrey suburbs, the prices of high-end properties took a drubbing during the credit crunch.

Demand and prices have now begun to recover but concerns remain about the durability of the upturn and continuing controversy over the scale of City bonuses. Many of the High Street banks have withdrawn from the £1m-plus mortgage market or have imposed fees and rates of interest that make their offering unattractive.

- On average, UK adults have over a quarter (27%) of their savings and liquid assets in cash (31% in March 2009)
- Almost one in five (18%) of adults have over half their assets in cash savings
- Estimated four million UK adults have £25,000 or more in cash savings accounts

- US dollar Investec Horizon Account pays 1.61% AER¹ (1.60% gross²)

According to analysis³ by Investec Bank (Channel Islands) Limited (‘Investec’), the average rate of interest paid on US dollar offshore savings accounts for balances of $50,000 fell by 0.03% to just 0.45% during the three month period 29 May to 28 August 2009. This is despite the US Federal Reserve rate (‘Fed’) remaining static since it was cut to 0.25% on 16 December 2008.

Investec Bank (Channel Islands) Limited (‘Investec’) has recorded strong profits, as it announces its results for the year ended 31 March 2009. Part of the international banking group Investec plc, the Channel Islands business has revealed a post tax profit of £16.6 million, which while down on the record 2008 profit of £20.9 million, represents a 19% increase on 2007, prior to the economic downturn.

- Over three million cash ISA savers to reduce or stop their regular deposits in their Cash ISA over next six to 12 months
- Almost six million Cash ISA savers (28%) are unaware of the change in rates over the past 12 months
- But over 11 million savers are likely to use the increased allocation of £5,100 when available

Around one in 10 UK adults with a Cash ISA (equivalent to 2.1 million people) are planning to reduce the amount or stop regularly saving into these tax efficient wrappers over the next six to 12 months because the rates are so low, according to new research¹ from Investec Private Bank (‘Investec’). A further 800,000 savers with a Cash ISA intend to close their account altogether over this period for the same reason.

New research¹ from Investec Private Bank reveals that many investors with Self Invested Personal Pensions (SIPPs) are receiving derisory returns on the cash they hold in these wrappers. Analysis of 84 SIPPs reveals that the average return on cash balances of £1,000 is just 0.13% gross AER² as accounts have tracked the downward path of the Bank of England base rate.

The founder of Investec’s ABL team on providing debt structures and not debt products, recognising when to say no and the growing phenomenon known as “delay and pray”.

Real Deals, 24 September 2009

Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Private Bank, the international banking group, has announced that it is broadening its offering to focus on providing banking services to local individuals as well as its local intermediary client base.

Investec Private Bank (‘Investec’) has today launched a specialist lending service focused on the financing needs of leading private equity professionals, investors and funds. The Private Equity Partner and Fund Finance service provides a broad range of financing facilities tailored to the unique requirements of the private equity sector.

Investec’s Specialised Lending division has been piloting a scheme since the start of 2009 and has closed six transactions and provided more than £64 million in loan facilities to a number of private equity professionals and private equity firms in the UK, continental Europe and Australia.

- 13 million UK adults unaware of the rate of interest paid on bank accounts
- An increasing number of people are unaware of rates of interest paid

A growing proportion of savers do not know the rate of interest they receive on their deposits, according to new research¹ from Investec Private Bank (‘Investec’). Its latest Savings Monitor reveals that more than a third (36%) of savers, or the equivalent of almost 13 million UK adults², are unaware of the rate of interest they are earning on any of their bank or building society accounts. This figure is up from 32% six months previously³.

13% of pension administrators say cash allocation has increased by 26% to 50%^1. The Investec Pension and Trust Reserve Account currently pays up to 3.00%² gross AER³.

New research¹ from Investec Private Bank (‘Investec’) reveals that over the past 12 months the majority (55%) of pension administrators surveyed said that their clients increased the cash allocation of their Self Invested Personal Pension (SIPP). Nearly a quarter (23%) said that they had typically witnessed an increase of up to 25% amongst their clients. However, a further 13% of pension administrators reported an increase in the amount allocated to the cash element of their clients’ SIPPs of between 26% and 50%.

Investec’s research reveals that while 39% of pension administrators believe their clients tend to have less than £100,000 in the cash portion of their SIPP, 13% have between £100,000 and £250,000. Around 3% have between £500,001 and £1million in cash.

The new Investec Business High 5 Account will pay the average of the five highest business savings accounts. Its current rate is 2.41%² Gross AER³. For balances of £50,000, 17% of business savings accounts pay 0.05% Gross or less1.

New research1 from Investec Private Bank (‘Investec’) reveals that for balances of £50,000 and £250,000, 58% and 54% of business savings accounts respectively pay less than 0.5% Gross. Equally alarming is the fact that less than one in ten (9%) accounts pays 2% Gross or more on balances of £50,000 and only 11.3% offer this for deposits of £250,000.

Investec Private Bank has launched a new savings account called the Business High 5 Account, which requires a minimum deposit of £50,000 and will pay a market leading rate every week². This is because each week the independent financial product research company Moneyfacts will take the five highest savings rates in the business savings market across the categories of no notice, 7, 30, 60, 90 and 90+ day notice accounts, find their mid-point and use this to set the rate for the Investec Business High 5 Account. As well as being assured one of the best rates available, businesses also have the added benefit that the rate is set independently. The new account, which has a three month notice period, does not rely on bonuses to inflate its rate. The current rate for the Business High 5 Account is 2.41%² Gross AER³.

Jack Jones of Investec Private Bank said: “Generally speaking, the level of interest offered to deposits belonging to UK companies is ridiculously low. Our research¹ shows that for balances of £50,000, 17% of business savings accounts pay 0.05% Gross or less, and there are three accounts paying no interest at all. This is totally unacceptable, and given that businesses have billions of pounds on deposit with banks and buildings societies, it is important that they shop around for a fair and competitive return.”

Research⁴ from Investec Private Bank reveals that businesses with an annual turnover of between £1 million and £5 million for example, have approximately £48 billion deposited with banks and building societies in the UK. Also, on average British businesses have around 27% of their assets in cash deposit accounts⁴.

To find out more about the Investec Business High 5 Account or Investec Private Bank’s other unique savings products, please call 0845 366 6333 or visit www.businesshigh5.co.uk

• Average rate has fallen during last three months by more than recent ECB rate cut
   
• Two accounts paying no interest at all on deposits of €50,000

The average rate of interest paid on Euro offshore savings accounts has dropped by 0.26% to just 0.96% in the past three months, according to analysis by Investec Bank (Channel Islands) Limited of the latest wave of its Euro Offshore Savings Account Index¹.

Investec Private Bank’s High 5 Account has paid a consistently high rate since its launch in October 2003. Indeed, the rate has never fallen below 3.03% gross AER and at its highest just under a year ago was 6.58% gross AER – when the Bank of England base rate was 4.50%. The current rate is 3.14%¹ gross AER².

The interest rate on the account is unique because it is based on the rates paid by the top five ‘best buy’ accounts (those savings accounts with the highest rates of interest)3 across the market, therefore the rate is determined independently.

Stephen Henry has been announced as the new Managing Director of Investec Bank (Channel Islands) Limited, part of Investec Private Bank, the international specialist banking and asset manager group, effective as of September 2009, subject to regulatory approval. Stephen is currently Finance Director at Investec Bank (Channel Islands) Limited, based in Guernsey, and has been with the company for 13 years, working closely alongside the current Managing Director Mort Mirghavameddin.

Stephen Henry says: “I’m delighted to be taking on this role. These are exciting times for Investec in the Channel Islands; with our continued success in Guernsey and the Jersey Branch office having just celebrated its first anniversary, we are fast becoming the bankers of choice to our targeted clientele.

“Investec Bank (Channel Islands) Limited has seen profits grow from £8 million in 2005 to £20.9 million in 2008 and our client deposit book increase from £811.8 million to £1.671 billion over the same period. My intention therefore is to retain our current, very successful strategy of focusing on delivering impeccable service and innovative wealth creation solutions for our clients.”

Mort Mirghavameddin steps down in September after eight years at the helm of Investec Bank (Channel Islands) Limited in order to pursue other interests.

Mort Mirghavameddin says: “My time with Investec has been thoroughly rewarding and the success we’ve had in terms of growing the Channel Islands business has been tremendous. Stephen has been closely involved in the strategic direction of the business throughout my time and I’m sure will prove to be an excellent choice of leader to take the business forward.”

• Between 1 February 2009 and 1 May 2009 the average fall in interest rates for savings accounts on balances of £25,000 was 0.516%. 
• Rates on ‘no notice’ accounts fell the furthest by 0.717% over the period. 
• The Investec High 5 Account is currently paying 3.11%¹ gross AER²., 2.61% higher than the Bank of England base rate.

The latest findings from Investec Private Bank’s (‘Investec’) Savings Index³ (the ‘Index’) reveals that between 1 February and 1 May 2009, banks and building societies reduced the rate on 725 savings accounts for balances of £25,000 or more, by 0.516% on average. According to the Index, ‘no notice’ accounts saw the biggest drop in interest rates during this period with a fall of 0.717%, compared to a 0.5% drop in the Bank of England base rate.

Investec Growth & Acquisition Finance has provided TMP (UK) Limited (“TMP”) with an integrated funding structure to refinance the business and position it for future growth. TMP is a market leader in UK recruitment advertising and is backed by private equity firm Graphite Capital.

• 55% believe they could get a better rate of interest with another provider¹
   
• Half rate banking facilities of existing SIPP/SSAS providers as ‘average’ or ‘poor’¹
   
• The Investec Pension and Trust Reserve Account currently pays up to 3.00%² gross AER³

Six savings accounts for balances of £25,000 or more have dropped out of ‘best buy’ table compared to previous quarter, according to latest Savings Index. The Investec High 5 Account is currently paying 3.20%¹ gross AER²., 2.70% higher than the Bank of England base rate.

New research from Investec Private Bank (‘Investec’) for its latest Savings Index³ (the ‘Index’) reveals that six savings accounts for balances of £25,000 or more have fallen out of the top ten ‘best buy’ table for the period 1 February to 1 May 2009, compared to the previous quarter (1 November 2008 to 1 February 2009).

Research¹ from Investec Private Bank reveals that for balances of £25,000, the average monthly interest rate on notice, no notice and instant access savings accounts is just 1.01% Gross³. The corresponding figure for balances of £1 is 0.98%¹ Gross³.

Investec launches business version of account on the back of high demand

The average rate of the top five ‘best buy’ savings accounts has increased for the fifth successive week despite the Bank of England’s decision on 4 June to maintain the base rate at just 0.5%. This means that Investec Private Bank’s High 5 Account is now paying 3.20%¹ gross AER², compared to 3.03% gross AER just five weeks ago.
 

• The new Investec Business High 5 Account will pay the average of the five highest savings business accounts. Its current rate is 2.44%¹ Gross AER²
   
• Investec research reveals that businesses with an annual turnover of between £1 million and £5 million have over £48 billion in cash deposit accounts³
   
• 38% of business cash deposit accounts pay 0.1%Gross AER or less⁴

• The new Investec Business High 5 Account aimed at charities will pay the average of the five highest savings business accounts. Its current rate is 2.44%¹ Gross AER²
   
• Investec estimates that charities have over £10 billion in cash, which is 15% of their net assets³
   
• 32% of business cash deposit accounts pay 0.1% Gross AER or less ⁴

For savings accounts offering interest on a monthly basis, the Investec High 5 Account pays one of the highest rates, 3.06%² Gross³ available. Its annual rate of interest is 3.10%² Gross³ AER⁴

Research¹ from Investec Private Bank (‘Investec’) reveals that for balances of £25,000, the average monthly interest rate on notice, no notice and instant access savings accounts is just 1.01% Gross³. The corresponding figure for balances of £1 is 0.98%¹ Gross³.

Investec Bank (Channel Islands) Limited has announced the launch of its Investec Fixed Reserve Account, which offers a highly competitive interest rate of 3.00% AER¹/gross² for individual investors with £50,000 or more.

Investec Private Bank, part of Investec plc, has appointed Eric Ebermeyer as Chief Investment Officer and Head of Portfolio Management for its European wealth management business. The appointment, based in London, comes as Investec sees increased demand from sophisticated entrepreneurial private clients for its specialist wealth management services.

The Investec Horizon Account pays 1.61% AER¹ (1.60% gross²)

According to analysis³ by Investec Bank (Channel Islands) Limited, only 6 of the 34 US dollar offshore savings accounts available were paying clients 1% or more in interest as at 31 May 2009.

The average rate of the top five ‘best buy’ savings accounts has increased for the third successive week despite the Bank of England’s decision on 4 June to maintain the base rate at just 0.5%. This means that Investec Private Bank’s High 5 Account is now paying 3.10%¹ gross AER², compared to 3.03% gross AER just three weeks ago.

- Between 1 February 2009 and 1 May 2009 the average fall in interest rates for savings accounts on balances of £25,000 was 0.516%
- Rates on ‘no notice’ accounts fell the furthest by 0.717% over the period
- The Investec High 5 account is currently paying 3.11%¹ gross AER², 2.61% higher than the Bank of England base rate

The latest findings from Investec Private Bank’s (‘Investec’) Savings Index³ (the ‘Index’) reveals that between 1 February and 1 May 2009, banks and building societies reduced the rate on 725 savings accounts for balances of £25,000 or more, by 0.516% on average. According to the Index, ‘no notice’ accounts saw the biggest drop in interest rates during this period with a fall of 0.717%, compared to a 0.5% drop in the Bank of England base rate.

The average rate of the top five ‘best buy’ savings accounts has increased for the second successive week despite the Bank of England’s decision on 4 June to maintain the base rate at just 0.5%. This means that Investec Private Bank’s High 5 Account is now paying 3.07%¹ gross AER².

New research³ from Investec Private Bank reveals that many banks and building societies are increasingly using bonuses to inflate their headline rates. Its latest Savings Index³ shows that the average bonus paid on a savings account for balances of £25,000 is 0.97% (during the period 1 February to 1 May 2009), up from 0.84% three months ago (1 November 2008 to 1 February 2009).

The average rate of the top five ‘best buy’ savings accounts has increased by 0.03% in the past week despite the Bank of England’s decision on 4 June to maintain the base rate at just 0.5%. This means that Investec Private Bank’s High 5 Account is now paying 3.06%¹ gross AER².

The latest findings from Investec Private Bank’s Savings Index³ reveals that between 1 February and 1 May 2009, banks and building societies reduced the rate on 725 savings accounts for balances of £25,000 or more. However, the rate of interest remained steady on 96 accounts and was increased on 10 accounts, confirming that there are still some attractive rates available to savers.

Investec Bank (Channel Islands) Limited has announced the launch of a one year fixed term deposit account with a highly competitive interest rate of 2.25% AER¹ on Sterling, Euro, US dollar deposits.

The minimum opening balance requirement is £50,000 or currency equivalent with the interest paid on maturity. The capital and income can also be paid separately into different accounts if required. Additional benefits of the Investec Fixed Term Deposit account include access to a personal relationship manager in Guernsey and the expertise of Investec’s in-house treasury and foreign exchange team.

In light of the recent G20/OECD tax havens black list, Investec Trust (Mauritius) Limited’s Tanya Cohen looks at the secrecy provisions and other factors to be considered when choosing a jurisdiction for an offshore structure, with particular reference to Mauritius as an option for South African clients and their advisors.

• Estimated five million UK adults have £25,000 or more deposited in savings accounts
   
• On average almost a third (31%) of liquid assets of UK adults are cash
   
• One in five (20%) of adults have over half their assets in cash savings

On average UK adults have almost a third (31%) of their savings (excluding property and equity ISAs) in cash according to new research1 from Investec Private Bank. In addition, the research shows that around one in five (20%) UK adults have at least half of their savings and liquid assets in cash savings accounts.

• Over one in five accounts for balances of £25K paying 0.1% interest or less
• 3 accounts paying 0% interest on balances of £1
• 4 accounts paying 0% interest on balances of £5K

New research^₁ from Investec Private Bank (‘Investec’) reveals that 41% of savings accounts for balances of £1 are currently on ‘death row’, paying 0.1% or less in interest. Of these, three accounts have already walked the green line and are now paying 0% interest.

It was a telling sign of the times that during the G20 protests in the City the general advice to workers was to dress down but not like ‘dressed down bankers.’ The changing perception of the banking profession in the eyes of the media and public from reliable, responsible and a little dull to risk taking wealth destroyers is laid bare in a recent survey that revealed that just two per cent of the public trust bankers. Only estate agents were less trusted!

...but the Euro Investec Horizon Account remained in top 10 every month for past year.

New research¹ from Investec Bank (Channel Islands) Limited (‘Investec’) reveals that many ‘best-buy’² Euro offshore savings accounts are failing to offer savers any form of consistency. Analysis of Moneyfacts data between 31 March 2008 and 31 March 2009, shows that over the course of the year, only one account remained consistently in the top 10 for best rates for every month for the entire year, which was the Investec Euro Horizon account.

Investec Private Bank welcomes the news that the allowance for tax free cash ISAs is going to be increased from £3,600 to £5,100. However, it says that further tax relief measures for savers should be considered to encourage people to save more.

The average rate of the top five ‘best buy’ savings accounts has bucked the industry trend of interest rate cuts despite the Bank of England base rate being just 0.5%. This means that the Investec High 5 Account is now paying 3.17%¹ gross AER², up from 3.11% last week.

New research¹ from Investec Private Bank reveals that savings accounts remain reliant on the use of bonuses to inflate their headline rates. For balances of £25,000 or more, its findings reveal that on 1 February 2009, there were 150 accounts (15.9% of all accounts) using a bonus, down marginally on the three months ending 1 November 2008.

New research³ from Investec Private Bank reveals that over six million retired people across the UK are dependent on the income they receive annually from their cash savings accounts for up to 20% of their total income. In addition, almost 1.5 million (13% of retired people) depend on savings for over 10% of their annual income and around 577,000 rely on their savings for over a fifth of their income. Staggeringly, 144,000 retirees depend on savings to provide more than half of their monthly income.

According to analysis by Investec Bank (Channel Islands) Limited, a quarter (25%) of US dollar offshore savings accounts were paying no interest at all on deposits during the period 28 November 2008 to 27 February 2009¹.

The average rate of the top five ‘best buy’ savings accounts is holding up well despite the Bank of England base rate being just 0.5%. This means that the Investec Private Bank’s High 5 Account is now paying 3.11%¹ gross AER².

Research from Investec Private Bank reveals that nine savings accounts made it into the top five on a weekly basis in the month ending 30 January 20071, and collectively they paid an average interest rate of 5.60% gross AER². However, recent analysis shows that five of these accounts are now closed to new customers and one account, from IceSave, has been withdrawn following the demise of the failed Icelandic bank.

New research¹ from Investec Private Bank indicates that almost a third (32%) of savers, or the equivalent of around 12 million UK adults², are unaware of the rate of interest they are earning on any of their bank or building society deposits as the Bank of England base rate tumbles. It reveals that almost a quarter of savers (22%) know the exact rate of interest they are receiving on all their bank accounts, compared to 19% eight months ago³.

The average rate of the top five ‘best buy’ savings accounts has bucked the industry trend of interest rate cuts despite the Bank of England base rate being just 0.5%. This means that the Investec Private Bank’s High 5 Account is now paying 3.41%¹ gross AER², up from 3.31% last week.

New research¹ from Investec Private Bank reveals that in the six months between 17 September 2008 and 11 March 2009, 65% of the top five places in the weekly best-buy savings account tables were taken by notice accounts, with the remainder going to those offering instant access.

Between 1 November 2008 and 1 February 2009 the top five ‘best buy’ accounts for balances of £25,000 or more reduced their rates by on average 0.6% less than the Bank of England base rate cut over the same period.

Average returns from savings accounts on balances of £25,000 is now 1.36%, but some accounts are paying much more.

The Investec High 5 account is currently paying 3.32%¹ gross AER². This is 2.82% higher than the Bank of England base rate

The Investec Pension and Trust Reserve Account currently pays 3.00%(¹) gross AER(²) for balances of £100,000

Difference between Bank of England base rate and Investec Pension and Trust Reserve Account increases from 0.10% in November 2008 to 2.50% now
 

The top five ‘best buy’ savings accounts are continuing to prove largely resilient to interest rates falls despite the Bank of England base rate cuts on 5 February by 0.5% and today by 0.5% to just 0.5%, which means that the Investec Private Bank’s High 5 account is paying 3. 41%¹ gross AER².

Investec Bank (Channel Islands) Limited (‘Investec’) has announced the launch of Australian dollar and South African Rand versions of its Direct Reserve account. The move follows increased demand amongst Investec’s existing client base for accounts in these currencies; in part due to clients migrating from South Africa to Australia.

Research¹ from Investec Private Bank (‘Investec’) reveals that the gap between the Bank of England base rate and the average of the best-buy savings accounts has increased from just 0.37% on 17 January 2007 to 2.59% on 11 February 2009. Given the current economic crisis, many banks and building societies have had to keep their rates high as they look to attract deposits from savers.

New research¹ from Investec Private Bank reveals that during the 56 weeks between 2 January 2008 and 21 January 2009, for balances of £25,000 and above, 56 different accounts featured among the top-five savings accounts.  The accounts were from 28 different banks and building societies.

Investec Bank (Channel Islands) Limited (‘Investec’) has been awarded the prestigious title of Best Large Business at the 2008 Guernsey Awards for Achievement. The award was announced at the awards gala evening held in Guernsey on 5 February 2009.

Despite the Bank of England base rate today being cut by 0.5% to just 1.0%, Investec Private Bank’s High 5 account is still paying 4.07%¹ gross AER². The interest rate on the Investec High 5 savings account is unique because it is based on the rates paid by the top five ‘best buy’ accounts (those savings accounts with the highest rates of interest)³ therefore the rate will only drop if these accounts lower their rates.

Investec Growth & Acquisition Finance (‘Investec’) has continued its support of a group of integrated communications and technology (ICT) companies including Telinet, Evolution Voice and Data and Pasporte Limited (“The Group”) through funding the acquisition of Ipitomi, an ICT solutions provider.  The acquisition brings Investec’s total funding commitment to The Group to over £16 million comprising senior and intermediate capital.

A senior role at Investec Trust has been taken up by experienced trust professional, Luis Gonzalez.

As a director of the business, Luis will provide senior support for significant UK non-domiciled private clients with a diverse range of structures and he will have particular responsibility for property interests.

• On average, for balances of £25,000, accounts cut their rates by less than the Bank of England base rate because many are already paying extremely low returns
• Average returns from savings accounts on balances of £25,000 is 3.66%, but some accounts are paying much more
• The Investec High 5 account is currently paying 4.80%¹ gross AER². This 2.80%higher than the Bank of England base rate

The gap between the European Central Bank (ECB) rate and the average interest rate paid on Euro offshore savings accounts continued to narrow between 31 July and 31 October 2008, falling from 0.32% on 31 July 2008 to just 0.18% on 31 October 2008. This is according to analysis by Investec Bank (Channel Islands) Limited of the latest wave of its Euro Offshore Savings Account Index¹.

Despite the Bank of England base rate being cut by 1.5% to just 3% earlier this month, Investec Private Bank says that best-buy savings accounts are still paying interest rates of over 6%.

Reflecting the fact that many banks are maintaining high interest rates on their accounts to attract deposits, the interest rate on the Investec High 5 savings account, which pays the average of the top five best-buy accounts², is currently 6.18% gross AER¹. This is despite the 1.5% cut to the Bank of England base rate on 6 November 2008 and means the account is currently paying 3.18% over base.

Reflecting the fact that many banks are maintaining high interest rates on their accounts to attract deposits, the interest rate on the Investec High 5 savings account, which pays the average of the top five best-buy accounts¹, is currently 6.39% gross AER². This is despite the 1.5% cut to the Bank of England base rate on 6 November 2008 and means the account is currently paying 3.39% over base.

New research¹ from Investec Growth & Acquisition Finance (‘Investec’) reveals that despite the present economic climate senior decision makers at over a quarter (27%) of UK corporates with an annual turnover in excess of £10 million believe their companies are likely to make an acquisition in the next 12 to 24 months. 

According to Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Bank (UK) Limited, the international specialist banking and asset manager group, analysis of data from its US dollar and Euro offshore savings indices (‘Indices’) has revealed a surge in competition in the US dollar and Euro offshore savings markets over the past three years.

A leading conference attracting an expert international audience will discuss the future of trusts and foundations at the Hotel de France on November 4.

The interest rate on the Investec High 5 savings account has today increased from 6.57% gross AER¹ to 6.58% gross AER, the highest the account has paid in the five years since it was launched on 1 October 2003.

Given that in the long-term equities rise, it is at least understandable when investors avoid long/short strategies. However, in the fi xed income space, hedge strategies have a much clearer advantage over their long-only counterparts.

Investec Private Bank has strengthened its European Wealth Management team with the appointment of Jennifer Macintyre and Catherine Kirchmann as senior investment practitioners.

Whither goest thou?

Issues of the moment for the trust industry / A look at our language
By Robert Clifford, Investec Trust

The world of wealth and the way it is treated by the global financial services industry is changing. Trust practitioners in particular are looking closely at the evolving face of clients and their needs. In Guernsey there appears to be both an industry and regulatory understanding that, in order to continue to grow, changing quickly and changing intelligently is the order of the day. Investec Trust’s Jane Kerins argues that it is those trust specialists that adapt with innovation that will see continued success.

Unusual corporate gifts have benefitted animals at Jersey’s Durrell Wildlife Conservation Trust.

Investec Trust, with offices in both Jersey and Guernsey, decided to donate money to the trust rather then give corporate gifts to guests and speakers at a dinner debate held in London last week.

Average rate for US dollar offshore savings accounts continues to exceed Fed rate - but a fifth of accounts are paying less than 1% interest

According to Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Bank (UK) Limited, the international specialist banking and asset manager group, the average interest rate for US dollar offshore savings accounts has continued to remain higher than the US Federal Reserve (Fed) rate during the period 30 May to 29 August 2008¹. The average rate exceeded the Fed rate for the first time between 29 February and 30 May 2008 since Investec launched its US Dollar Offshore Savings Index (‘Index’) in May 2006.

Research recently conducted by Investec Private Bank (‘Investec’) reveals the benefits of accounts with rates linked to LIBOR (London Inter-bank offered rate)¹ for business banking clients, rather than those linked to the Bank of England base rate. Analysis by Investec shows that one month LIBOR has consistently outperformed the base rate since the beginning of August 2007.

Investec Private Bank has today launched a specialist lending service to leading sports persons, music and entertainment artists looking to borrow against a range of assets.

The gap between the European Central Bank (‘ECB’) rate and the average interest rate paid on Euro offshore savings accounts narrowed by 0.04% to 0.32% between 30 April and 31 July 2008. This is according to analysis by Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Private Bank, the international specialist banking and asset manager group, of the latest wave of its Euro Offshore Savings Account Index (‘The Index’)¹.

One in five property companies is unaware of the rate of interest offered by their bank or building society on cash held on deposit according to research1 commissioned by Investec Private Bank (‘Investec’). The research reveals that of these companies, almost a third (30%) earn less than the Bank of England base rate for their cash deposits.

China and Vietnam are regarded as having the biggest potential for capital growth in both residential and commercial property in Asia over the next two years, according to new research commissioned by Investec Private Bank’s Structured Property Finance division¹.

Research¹ from Investec Private Bank (‘Investec’) reveals that the majority of best-buy savings accounts come from building societies. However, its research shows that the vast majority of top paying savings accounts – including those from building societies - do not last long in the best-buy tables.

Investec Bank (Channel Islands) Limited (‘Investec’) has continued to expand its Jersey branch with the appointment of Dom Michon, Richard Thomas and Mark Forster, who have joined the Financial Intermediaries team.

Investec Bank (Channel Islands) Limited (‘Investec’) has recorded its sixth consecutive year of profit growth, as it announces its results for the year ended 31 March 2008. Part of the international banking group Investec plc, Investec has seen a 49% increase in profits after tax to £20.9 million (2007: £14.0 million); a 15% increase in client deposits to £1.671 billion and an 18% increase in the loan book to £513.4 million.

There can be little doubt that philanthropy is in fashion for those who work in the private client world. High profile campaigns such as rock star Bono's one man mission to alleviate Third World debt for developed nations, Sir Tom Hunter (Scotland’s richest man) and his well-publicised philanthropic initiatives, the Gates Foundation's massive resources and ambitions (such as its programmes to eradicate malaria and river blindness), and billionaire investor and Berkshire Hathaway Chair Warren Buffett's donation in 2006 of USD30 billion to the Gates Foundation, have all ensured that philanthropy is top of the agenda for many of the world’s wealthy. 

It is difficult to reflect on where Jersey and Guernsey are now as Crown Dependencies and thriving individual offshore financial jurisidictions without looking back on the events which have shaped both islands and their shared history. 

The interest rate on the Investec High 5 savings account has just increased from 6.55% gross AER¹ to 6.56% gross AER¹, the highest the account has paid since it was launched on 1 October 2003. The rate increase follows the recent announcement by Investec Private Bank (‘Investec’) that it has reduced the term period from one year to three months notice on its High 5 Account.

Investec Bank (Channel Islands) Limited (‘Investec’) has announced the appointment of Kevin Allen to the position of Head of Investec Bank (Channel Islands) Limited Jersey Branch and Tony Grimes as Head of Risk and Compliance in Jersey.

Investec Bank (Channel Islands) Limited (‘Investec’) has increased the interest rate on its Euro Investec Horizon Account (‘Horizon’) to 4.95% gross (5.04% AER¹) with effect from the 4 July 2008, following the decision by the European Central Bank (ECB) to raise its refinancing rate to 4.25%.

Investec Growth & Acquisition Finance (‘Investec’) has provided a £13 million debt facility to fund the MBO of Communisis plc’s business stationery division. The Investec team provided asset based lending, including receivables financing, inventory financing, plant and machinery loans and acquisition finance.

During the last three months, Investec Private Bank (‘Investec’) has seen its residential mortgage (‘mortgage’) lending increase by 45% when compared to the same period last year.

Choosing the right trustee

Choosing the right trustee is probably the most important decision faced by a prospective settlor and his or her advisor, especially when faced with the myriad of choices available in the global market place. Investec Trust’s Rosemary Marr looks at the options.

According to research¹ commissioned by Investec Private Bank’s Structured Property Finance division, property investors estimate that over the past 12 months prime and secondary UK commercial property values have fallen by an average of 10% and almost 14% respectively. Nearly one in five (18%) of those interviewed estimated that secondary valuations have dropped by as much as 16-20%.

...but a quarter of accounts are paying less than 1% interest

According to Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec (UK) Limited, the international specialist banking and asset manager group, the average interest rate for US dollar offshore savings accounts has risen above the US Federal Reserve (Fed) rate for the first time since it launched its US Dollar Offshore Savings Index (‘Index’) in May 2006.

The interest rate on the Investec High 5 savings account has just increased from 6.51% gross AER¹ to 6.55% gross AER¹, the highest the account has paid since it was launched on 1 October 2003 and the second time it has increased this month. The rate increase follows the recent announcement by Investec Private Bank (‘Investec’) that it has reduced the term period from one year to three months notice on its High 5 Account.

Investec Growth & Acquisition Finance (‘Investec’) has provided NBGI Private Equity (‘NBGI PE’) with a £10 million package of senior debt and mezzanine finance to back the £16m MBO of Rock Asphalte (‘Rock’), the UK’s leading specialist roofing and structural waterproofing provider.

Average ‘bonus’ rate expires in under nine months

Almost one in five (19%) or around 14,000 medium-sized UK companies are receiving less than the Bank of England base rate on their cash deposits, according to new research from Investec Private Bank (‘Investec’)1. The findings reveal that typically companies with a turnover of between £1 million and £20 million have 45% of their liquid assets deposited as cash in a bank or building society at any given time.

> Only one in five accounts for balances of £25,000 is beating the five % base rate
> While the Bank of England base rate was reduced by 0.5 % in the last three months,almost one in six accounts cut rates by more than this amount
> But competitive rates of over six per cent are still available

The interest rate on the Investec High 5 savings account has just increased from 6.47% gross AER¹ to 6.51% gross AER¹, the highest the account has ever paid since it was launched on 1 October 2003. The rate increase follows the recent announcement by Investec Private Bank (‘Investec’) to reduce the term period from one year to three months notice on its High 5 Account.

Investec Growth & Acquisition Finance (‘Investec’) has continued its support of the Telinet Group of companies (‘Telinet’) with the provision of £11m of preferred equity for the acquisition of Pasporte Limited (‘Pasporte’) alongside management investors. The acquisitions enhance Telinet’s stated strategy of providing Integrated Communications and
Technology (ICT) managed services to medium sized businesses in the UK.

The average interest rate of Euro offshore savings accounts is continuing to climb upwards with the overall average interest rate rising 0.08 between 31 January and 30 April 2008. The findings follow analysis by Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Private Bank, the international specialist banking and asset manager group, of the latest wave of its Euro Offshore Savings Account Index (‘The Index’)¹.

> Account commits to always pay the average of the top five best-buy accounts as chosen by Moneyfacts
> New research from Investec reveals poor levels of consistency from ‘best-buysavings accounts

What impact will the changes to the residence and domicile rules in the UK Budget have on the offshore trust industry in Jersey?

Investec Growth & Acquisition Finance (‘Investec’) has provided £5.25 million of funding to support the management buyout (‘MBO’) of GRS Group (‘GRS’), the international executive search firm. The loan comprised receivables and acquisition finance. Total funding for the transaction was £18 million.

Investec Private Bank (‘Investec’) is urging business banking clients to consider the benefits of accounts with rates linked to LIBOR¹  rather than those linked to the Bank of England base rate. Analysis by Investec shows that LIBOR has consistently outperformed the base rate since the beginning of August 2007.

> 22% of bonus money will go into savings accounts
> Investec High 5 savings account currently pays 6.31% gross AER on balances of £25,000 or more

Growing competition in the savings market has ensured that a large number of savings accounts are still offering rates of above 6%, despite cuts in the UK base rate and a drop in the average savings rate paid, shows new research from Investec Private Bank (‘Investec’).

Owner-managed businesses are regularly being offered below market rates on their cash deposits, according to Investec Private Bank (‘Investec’). It believes that many of these companies are currently receiving a poor deal in terms of service and rate of interest from their bank, despite having significant cash deposits.

Investec Growth & Acquisition Finance (‘Investec’) has provided £5.25 million of intermediate capital funding to support the secondary management buyout of Coffee Nation, the UK market leader in self-serve gourmet coffee. Milestone Capital Partners Limited (‘Milestone’) led the transaction and provided the equity funding for the deal.

According to Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec plc, the international specialist banking and asset manager group, nearly two thirds (61%) of US dollar offshore savings accounts were paying rates of interest below the Fed rate of 3.00% as of 29 February 2008¹.

Investec Growth & Acquisition Finance (‘Investec’) has backed the management and a group of private investors in the management buy-out (MBO) of James Villa Holidays Ltd (‘James Villa Holidays’), the UK's leading tour operator specialising in villa holidays, with £6m of preferred equity. Bank of Scotland provided senior debt.

New research¹ by Investec Private Bank (‘Investec’) into the remuneration of Chief Finance Officers (CFOs) of companies across the FTSE 350 reveals that they are increasingly being rewarded through shares.

Investec has been established in Manchester since 2003 when its Structured Property Finance office, led by Richard Heggie, opened. The Private Bank has subsequently expanded its capabilities in the region, establishing a Treasury team early in 2007, and is now building the team further as it has identified a strong market for its Growth & Acquisition Finance division.

Professor Brian Scott-Quinn

Chairman of the International Capital Markets Association (ICMA) Centre - University of Reading

The UK government plans to introduce new measures which, from April 2008 they forecast will raise additional taxation from those who are not UK domiciled but are currently resident in the UK – the so-called ‘res non-doms’.

The gap between the average returns on Euro offshore savings accounts and the European Central Bank (‘ECB’) rate has halved in the past year from 0.89% to 0.44%, according to Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Private Bank, the international specialist banking and asset manager group.

> Almost one in five (18%) savers know the exact interest rate on all their bank accounts
> Consumers who save regularly deposit £233.75 on average each month

Investec Growth & Acquisition Finance has provided funding to support the rapid growth plans for Matrix SCM, a successful supply chain management business and part of Hamilton Bradshaw, a private equity firm established by well known entrepreneur James Caan.

Investec Growth & Acquisition Finance (‘Investec’) has continued its support of the Telinet Group of companies (‘Telinet’) with the provision of £8 million of preferred equity for the acquisition of two technology service companies, Newburn Consulting Limited (‘Newburn’) and Evolution Voice and Data plc (‘Evolution) alongside management and other private
investors. The acquisitions enhance Telinet’s stated strategy of providing Integrated Communications and Technology (ICT) services to mid market customers in the UK.

Investec Growth & Acquisition Finance (‘Investec’) has provided £12.75 million of funding to support the management buyout of Polypipe Sanitary Systems Limited (‘Polypipe Sanitary Systems’) from parent group Polypipe Limited (‘Polypipe’).

Investec Private Bank’s Structured Property Finance division (‘Investec’) is assisting Azzuri Corporation Ltd (‘Azzuri’) in its acquisition and development of a residential site on Victoria Road in Formby, near Liverpool. Investec has provided senior debt with an element of mezzanine to the value of £10.43 million.

Banks expected to continue lending albeit on a restricted basis

In promoting ourselves to you as an organisation which can deliver solutions to your needs, specifically in the family office space, it is probably worth defining what the term ‘family office’ means to us. At its simplest, the term represents a form of segmentation – a tailored offering for a specific part of the very Ultra High Net Worth market. A family office service, however, can in fact come in many guises - but in every case it should stand for superior focus, knowledge and client satisfaction.