An overhaul in the Treasury Group's (TRG) strategy has impacted its first-half year results with the group announcing a 19.7 per cent fall in profit.

Consolidated profit after-tax profit was $4.2 million, down from $5.2 million in the prior corresponding period.

The half-year result also included abnormal expenses of $974,972. Revenue was also flat, down 2.3 per cent to $2.2 million.

The firm manages a number of boutique investment firms including Investors Mutual, Orion Asset Management, Treasury Asia Asset Management, RARE Infrastructure, Celeste Funds Management and Aubrey Capital Management. 

The firm restructured two of its boutiques following a review last year by the chief executive Andrew McGill who was hired in July 2011.

Aubrey Capital Management took over the management of Global Value Investors because of poor performance.  Evergreen capital was brought in to manage AR Capital due to staffing issues around key person risks.

"These initiatives were necessary to deal with fundamental business issues at those boutiques.  Our half-year result includes $974,972 of abnormal expenses largely in relation to these actions," the company said.

Fund under management increased slightly by 1.5 per cent to $15.75 billion.

Investors Mutual, Orion Asset Management and RARE Infrastructure were the main contributors to the firm's revenue, the company said.

RARE Infrastructure in particular secured inflows both locally and internationally over the last six months.

Orion's alliance with Trilogy Global Advisors of New York also saw new fund flows into Trilogy's global and emerging market equity products.

Treasury Group chief executive Andrew McGill said the firm aims to increase diversity across its other five investment boutiques.

He said the group would also be looking at expanding is business into other asset classes including alternative investments.