BT Investment Management (BTIM) has more than doubled its profits in the last year, largely thanks to the strong performance of one of its international businesses.
BTIM this morning posted a statutory net profit after tax of $51.2 million – up 139 per cent on last year’s $21.4 million.
Its cash net profit after tax, meanwhile, was $61.9 million, a year-on-year rise of 49 per cent, which the company says more accurately represents its profitability.
Much of the growth was attributed to the impressive performance of the J O Hambro Capital Management (JOHCM) group.
“JOHCM has had an outstanding year,” BTIM CEO Emilio Gonzalez said.
“Its funds under management increased by 68 per cent in Australian dollar terms, attributable to strong net inflows, improving markets and favourable currency movements while at the same time delivering record performance fees.”
JOHCM brought in net inflows of $3 billion, while domestically BTIM saw outflows of $1.5 billion, which it attributed to a structural decline in its legacy book.
The best-performing asset classes for the year included income and fixed interest funds ($1.3 billion), UK equities ($1.1 billion) and global equities ($1 billion).
Gonzalez said he is optimistic the strong momentum will continue into the new year, particularly with the launch of three new offshore funds and new strategies for domestic clients.
“Subject to no dramatic adverse movements in market levels, we expect to see continued growth in earnings,” he said.
