Wealth manager Treasury Group has reported falls in total revenue, profit and funds under management (FUM) for 2011/12 following the restructure of its underperforming boutiques.
Treasury Group’s underlying net profit fell 17 per cent to $8.08 million in the 12 months ending 30 June, according to the company’s full-year results.
The company suffered a 12.2 per cent decline in total revenue to $3.95 million for the period and FUM decreased 2.25 per cent to $16.38 billion.
The full-year results include $1.3 million spent on the restructure of underperforming boutiques and redundancies.
The firm also cited fragile investor confidence for the dampened full-year results.
“There has been an increased level of caution among retail investors. Businesses … suffered net outflows as a result of this continued uncertainty and flight to perceived lower-risk asset classes,” Treasury Group said in a statement to the Australian Securities Exchange.
But Treasury Group said its year of consolidation and restructure well positioned the company for organic growth and expansion via mergers and acquisitions.
“Treasury Group has finished 2012 as a leaner and more focused business as a result of these [restructure measures] and other decisions taken by management and the board during the year,” it said.
“We expect coming years to be exciting and prosperous times for Treasury Group as we benefit from the restructuring work and investment decisions taken this year.”
Treasury Group 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.
It restructured two of its boutiques following a review last year by 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.
