Strong net inflows boost BTIM profit
BT Investment Management (BTIM) has delivered a record result for the financial year, ended 30 September, with a four per cent growth in net profit after tax (NPAT) to $147.5 million, thanks to strong net inflows of $4.7 billion.
Positive net inflows and higher global equity markets also contributed a 14 per cent increase in funds under management (FUM) throughout the financial year to $95.8 billion.
At the same time, strong growth in FUM resulted in a 12 per cent increase in base management fee revenue compared to the previous corresponding period (PCP) while performance fees were 51 per cent lower at $37.9 million.
Average FUM rose by 13 per cent to $90.4 billion supported by strong global markets while earnings per share (cash EPS) rose by nine per cent to 55.3 cents per share, the company said.
BTIM Group’s chief executive, Emilio Gonzalez, said: “BTIM’s fifth consecutive record result has been underpinned by strong net inflows, particularly in the higher margin wholesale channels, and continued growth in base management fees.
As far as the investment performance was concerned, performance over one year was mixed with the more defensive equity strategies, but at the same time a number of funds managed to outperform their benchmarks.
These included the BT Wholesale Focus Australian Share Fund (+8.1 per cent), BT Wholesale MicroCap Opportunities Fund (+7.2 per cent) and the BT Wholesale Ethical Share Fund (+5.6 per cent), among others.
The board also determined a final dividend of 26 cents per share, bringing total dividends for the 2017 financial year to 45 cents per share, up seven per cent on the previous year.
The company said that a stronger Australian dollar provided a notable headwind for the group’s 2017 financial year earnings, with the average level of the Australian dollar 17 per cent higher relative to the British pound, four per cent higher relative to Euro and three per cent higher relative to the US dollar over the year.
“This year’s record result reflects the focus of our long-term strategy of continuing to invest in new capabilities, delivery of superior long-term investment performance and continued development across global distribution,” Gonzalez said.
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