Certitude Global Investments, a wholly-owned subsidiary of HFA Holdings, has cited challenging markets as one of the reasons for a 15 per cent dip in assets under management and advice (AUMA) in the year ended 30 June 2012.
The investment management company also pointed to net fund outflows of $192 million, $71 million of which was from closed-ended legacy structured products.
“It is worth noting that these outflows were anticipated and a portion relate to structured products, which generate nominal or nil fees,” HFA Holdings said in a statement to the Australian Securities Exchange (ASX).
Certitude also experienced a 19 per cent decrease in net income from operating activities to $7 million. The fall is consistent with the 18 per cent decrease in average AUMA compared to the 2011 financial year, as well as a 4.5 per cent reduction in net management costs.
“The board sees the reduction in AUMA as the unavoidable results of the current Australian market conditions,” HFA Holdings chairman Spencer Young said.
“Certitude’s current business strategy … provides a solid foundation to benefit when Australian market conditions improve.”
HFA Holdings, which comprises United States-based Lighthouse Partners and Certitude Global Investments, posted an overall AUMA increase of 15 per cent to US$6.6 billion.
