BT reports 44 per cent profit drop
BT Investment Management (BTIM) has reported a 44 per cent decline in net profit after tax to just $12.7 million for the six months ending March 31, but has described it as a satisfactory result in tough conditions.
The company said the result was slightly better than the range of a 45 per cent to 55 per cent decline announced in a market update in February.
BTIM chairman Brian Scullin said the results had been directly affected by the sharp market declines experienced in the six-month period as the company’s funds under management, revenues and profitability are linked to the markets.
The company said funds under management stood at $30.6 billion as at March 31 and that this represented a decline of $4.7 billion for the six-month period.
However, it said against this backdrop, a strong relative market performance by BTIM funds and a growing balance of cash related products mitigated market falls, resulting in a 14 per cent reduction in funds under management compared to a 24 per cent decline in the All Ordinaries Index.
Looking over the horizon, BTIM chief executive Dirk Morris said the company was cautious on the short-term outlook and suggested its second-half revenue would inevitably reflect the lower opening funds under management balance.
He added that further substantial cost savings were becoming harder to deliver.
However, Morris said in the longer-term, underlying superannuation fundamentals remained positive in Australia and the unprecedented scale of government policy stimulus would eventually gain traction.
AUTHOR
Mike Taylor
Recommended for you
In this episode of Relative Return, host Maja Garaca Djurdjevic chats with Chris McGibbon, global head of real estate at Nuveen, about the long-term outlook and why the “knife has stopped falling” in property.
In this new episode of The Manager Mix, host Laura Dew speaks to Nick Paul, institutional portfolio manager at MFS Investment Management to delve into everything small and mid-cap equities.
In this episode of Relative Return, host Laura Dew chats with Kellie Wood, head of fixed income and deputy head of fixed income and multi-asset at Schroders Australia, to discuss why fixed income is returning to favour after a 12-year wait.
In this episode of Relative Return, host Laura Dew speaks with Michael Hunstad, deputy chief investment officer and chief investment officer of global equities at Northern Trust Asset Management, to debunk myths around index investing.
