BT Investment Management reports net outflows
In its latest financial report, BT Investment Management (BTIM) has reported net outflows of $700 million to end the December quarter at $34.7 billion in total funds under management (FUM).
The group's FUM grew from the $34.4 billion reported at 30 September 2012 but experienced net outflows of $600 million in low margin cash products, $400 million from its institutional business and around $100 million from wholesale.
Meanwhile, BTIM-owned JO Hambro Capital Management reported FUM of $13.4 billion, up from $12.2 billion at 30 September 2012.
According to the report, JO Hambro received inflows of around $300 million for its segregated mandates via the Global Select and UK Opportunities strategies, while open-ended investment company (OEIC) funds produced net inflows largely into the UK Equity Income and Japan funds.
Fee revenue for JO Hambro totalled $34 million, which will contribute $12.2 million to BTIM's statutory net profit after tax for the current financial year compared to $4.3 million for the prior corresponding period, the BTIM stated.
BTIM chief financial officer Cameron Williamson said the group was pleased with the first quarter results.
"The flows were flat at the group level but from a revenue perspective the outflows we've been experiencing are in low margin products and the inflows we've been getting are in the higher margin segment," he said.
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