Steady results for Treasury Group in difficult year
Treasury Group has announced an increase in funds under management (FUM) but a decrease in net profit after tax (NPAT) in what it describes as a "difficult year" for funds management.
While FUM increased almost 14 per cent to $16.7 billion, normalised NPAT was $9.72 million, a decrease of 4.5% over the year, the group announced in its full year financial results.
The group will pay a fully franked final dividend of 20 cents per share bringing the total dividend to 34 cents, up almost a third on the previous year.
"The past twelve months have been a difficult year in funds management," said TRG chairman Mike Fitzpatrick.
"The heightened level of caution among investors, particularly retail investors, reflects the recent volatility of global equities markets," he said.
TRG chief executive Andrew McGill said although the consolidated profit was down, growth in FUM and underlying aggregate earnings at Group boutiques were impressive in the context of volatile financial market conditions.
"TRG's normalised net profit after tax was marginally down, this was largely due to continuing investor caution impacting a number of managers," he said.
"Our multi-boutique strategy will remain at the core of Treasury Group's business, however, a strong balance sheet and the growth of existing boutiques provide financial capacity to consider a broad range of opportunities in future," he said.
Investment performance during year was generally strong, relative to benchmarks, and there were strong net fund flows, with institutional flows increasing, particularly at RARE Infrastructure, the group stated.
However, retail investor confidence remains weak and net outflows were experienced at Investors Mutual despite excellent performance and ratings upgrades, TRG stated.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
