Macquarie Wrap’s record December performance that saw it attract more than half a billion dollars in inflows will help the bank’s Financial Services Group (FSG) to a strong result for the six months to March 31, according to group head Peter Maher.
However, FSG is likely to be a bit player when Macquarie chief executive Allan Moss announces what he expects to be “a very substantial increase in profit” for the period.
Moss hinted today that the Investment Banking and Banking and Property groups would have the strongest results.
FSG’s Maher said that $560 million flowed into the Wrap in December, taking it to $13.7 billion under administration. Last year’s deal to provide back office administration for ING’s PortfolioOne platform, and the badging of the Cash Management Trust by Suncorp’s dealer group, have also been profitable.
Costs have been flat, which according to a spokesperson is mostly due to intensive information technology spending in the first three years of FSG’s existence, 2000-02.
Maher flagged opportunities for FSG including partnerships with boutique funds managers and the introduction of term allocated pensions.
