BTIM half-year profit down 20 per cent

BTIM half-year profit down 20 per cent

BT Investment Management (BTIM) has announced a cash net profit after tax of $66.5 million for the half-year ending 31 March 2015, down 20 per cent on the previous half-year.


A BTIM statement said the result was underpinned by investor demand for equity products offshore, strong investment performance across funds, higher equity market levels and favourable currency movements.

BTIM chief executive Emilio Gonzalez said: “The business is performing extremely well demonstrating the benefits of a diversified portfolio with strong investment performance.”

“We are delivering growth in FUM and base management fees in both our domestic and offshore businesses as a result of investing in new teams, products, and continuing to expand our global footprint.

“The result demonstrates the benefits of a diversified business across regions, investment strategies, currencies and channel.

“We are particularly pleased by the strength of flows into our US pooled funds which delivered considerable growth over the half year,” Mr Gonzalez said.

However, the recently recorded NPAT [net profit after tax] is 20 per cent lower than the previous corresponding period, the statement said.

The reduction in cash NPAT was the result of lower performance fees – $38.0 million compared to $114.7 million in first half of 2014.

“A number of our funds benefitted from differing market themes: our European equities funds found favour with investors as European central banks adopted quantitative easing; an ongoing appetite for yield underpinned good flows into our domestic income funds; and our global funds remained in strong demand through the period,” Mr Gonzalez said.

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