Treasury Group is planning to buy or partner with more established funds management operations, broadening its house of boutiques business strategy.
“We may be acquiring more mature businesses or partnering with businesses that are more established,” chief executive Andrew McGill told a briefing.
McGill unveiled the group’s 2010/11 annual profit of $9.7 million, down 4.5 per cent. Funds under management (FUM) climbed $2.1 billion to $16.7 billion.
The group’s average FUM rose 13 per cent to about $15 million, mainly on the back of increased flows to its 47.5 per cent-owned RARE infrastructure fund.
McGill, who took the helm five weeks ago, has a background in mergers and acquisitions, signalling a more acquisitive future for Treasury Group.
He said the group would look in Australia and offshore. He said Treasury Group had already set down roots offshore, citing Edinburgh-based fund manager Aubrey and Singapore-based TAAM.
“We feel we’re an international business, so it makes sense for us to look internationally,” he said.
He said the group was close to announcing details of its first executive-level distribution hire in the United Kingdom.
“The distribution executive will give us an increased ability to do business in the UK and Europe,” he said.
However, chairman Mike Fitzpatrick said an announcement was not around the corner.
“Would we be making an imminent announcement? No,” Fitzpatrick said.
“Would we be announcing something in the next 12 months? We’d hope so.”
