BT Investment Management (BTIM) announced its first-half results yesterday which met prospectus forecasts while predicting future funds under management (FUM) gains will be driven mostly by financial planners rather than institutional mandates.
BTIM reported cash net profit after tax (NPAT) for the six-months to March 31 of $22.8 million.
FUM fell to $38.2 billion during the period, from $41.9 billion when the company started in October 2007 after being spun-off from Westpac Bank.
“On a long-term basis we would expect net flows to be strongest from independent financial advisers and dealer groups,” BTIM chief executive Dirk Morris told InvestorDaily.
“That is both Westpac advisers and non-Westpac dealer groups which we have strong ties to.”
BTIM did not have specific figures available on money flowing in and out of dealer group platforms, but said that 70 per cent of the reported FUM was made of up of institutional mandates.
Morris, also BTIM’s chief investment officer, mentioned the firm’s strongest allegiances are with Count Financial, Genesys Wealth Advisers and the St George Bank subsidiaries Asgard and Securitor.
Late yesterday BTIM’s related company BT Financial Group announced it will remain an approved platform provider for Count Financial for the next five years.
Market volatility was the main culprit for the drop in FUM as nervous investors exited shares and pumped money into cash deposits for more stable returns, Morris said.
BTIM’s full-year NPAT would also be below the $45.7 million expected, but FUM would gain as the market stabilised, he said.
The investment boutique is also looking to open up two of its new institutional funds to the retail adviser market after they have been rated.
One fund would invest in global currency, which BTIM is looking to launch in between October and December.
The other is a 130/30 long/short fund that may be launched before September, Morris revealed.
BTIM’s share price fell 10c or nearly three per cent to close at $3.30 in trading yesterday.
