Treasury sees 49pc rise in FUM
Strong underlying growth has seen Treasury Group's net profit after tax (NPAT) grow by 27 per cent in the 2014 financial year, while the group has seen significant growth in its total funds under management (FUM).
Treasury reported an underlying net profit of $14 million for the year to 30 June 2014, with total FUM rising to $25.4 billion, in its full-year results, which were announced on the Australia Securities Exchange (ASX) today.
Treasury chief executive, Andrew McGill, said the figures represented "another good financial result" for the company, which he said were "due principally to FUM and earnings growth achieved from our boutique partners, particularly RARE Infrastructure and Investors Mutual".
"Average margins across Treasury Group's portfolio finished the year higher, in part due to continued funds inflow from higher margin retail investors at key boutiques," he said.
"We saw a high level of investment portfolio activity during the year with the addition of ROC Partners to our portfolio as well as restructuring action at some of our other portfolio investments."
Treasury chairman, Mike Fitzpatrick, described the results as "pleasing" and expressed optimism about the company's recently announce merger with the privately-owned US multi boutique funds manager, Northern Lights Capital Group.
"We are confident that business momentum will continue into 2015," he said.
"We are excited to be stepping into the next phase of growth for the company and the opportunity to create an international multi-boutique asset management group via the proposed merger with Northern Lights Capital Group."
The company also announced dividends were up by 25 per cent per share to 50 cents, with basic earnings per share up 26 per cent to 56.6 cents.
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