BTIM surfs markets to improved profit
|
|
BT Investment Management (BTIM) has moved strongly into the black, reporting an 11 per cent increase in net profit after tax to $14.2 million for the six months to the end of March, equating to a 58 per cent lift in statutory net profit after tax of $9.7 million.
BTIM chairman Brian Scullin attributed the profit increase to improved equity and credit markets and a continued focus on delivering long-term investment performance while keeping operational costs under control.
BTIM’s relatively new chief executive officer, Emilio Gonzalez, claimed the company’s multi-boutique model had demonstrated its resilience in difficult times.
BTIM said funds under management (FUM) had increased by $300 million over the six months to stand at $36.3 billion, with the increase being composed of market gains of $1 billion, offsetting net outflows of $700 million.
It said institutional and wholesale outflows were driven by lower margin cash and international fixed interest outflows, but there had been positive inflows of $400 million in Australian equities.
Discussing BTIM’s strategic objectives and outlook, Gonzalez said that while markets had improved significantly from the lows of March last year, investor confidence in riskier asset classes had not completely returned because of the current favourable rates being offered on term deposits.
He said BTIM was using the time as an opportunity to position for the future.
“We will review all our flagship funds to ensure they meet investor needs and are well-positioned for when investor appetite returns,” Gonzalez said.
AUTHOR
Mike Taylor
Recommended for you
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
In this week’s episode of Relative Return Unplugged, AMP’s chief economist, Shane Oliver, joins us to break down Labor’s budget, focusing on its re-election strategy and cost-of-living support, and cautioning about the long-term impact of structural deficits, increased government spending, and potential risks to productivity growth.
In this episode of Relative Return, host Laura Dew chats with Mark Barnes, head of investment research, and Catherine Yoshimoto, director of product management, from FTSE Russell about markets in Donald Trump's second presidency and how US small caps are faring compared to their large-caps counterpart.
In this episode of Relative Return Unplugged, we examine the push for superannuation tax reforms aimed at saving $10 billion annually, as well as the immense pressure being placed on Treasurer Jim Chalmers ahead of the budget and Deloitte’s warning of a $26.1 billion deficit.
