Equity fund manager K2 Asset Management has doubled its profit in the six months to December 31 on the back of increasing fee revenue.
Consolidated profit for the group, excluding income tax was $4,645,524 as of the end of December 2012, up from a 2011 half-year result of $2,102,056.
"Revenue increased from the prior comparative period due to the performance fees being payable by the K2 funds to K2 Assets Management Ltd in its capacity as investment manager," K2 said in a statement on the Australian Securities Exchange.
The total revenue from continuing operations was $12,315,055, increasing from a 2011 result in the same period of $7,216,479.
Revenue from management fees decreased from $6,651,401 in 2011 in the same period to $5,389,038. However, revenue from performance fees saw a boost from $2,226 to $6,446,736.
Funds under management (FUM) for the K2 Australian Absolute Return fund reached $356.3 million, which is a fund performance increase of 15 per cent.
The company's Asian Absolute Return fund saw the largest fund performance increase out of the K2 fund suite, with an increase of 20.1 per cent to reach $96.7 million in FUM.
The cumulative result for the K2 funds was $693.1 million in FUM.
