Treasury Group reports double digit growth
Treasury Group has announced double digit growth in its profits and funds under management following the rationalisation of its portfolio in the second half of last year.
In a statement released today the listed specialist investment management business said its underlying net profit after tax had increased 30 per cent, to $7.2 million, for the six months to the end of December 2013.
Total funds under management within Treasury Group, which has stakes in seven boutique managers, increased 13 per cent compared to the first half of 2013 to $19.1 billion. This growth has led Treasury Group to declare a dividend of 23 cents per share, an increase of 35 per cent on the first half dividend of $0.17 per share.
The high levels of profit and funds under management follow Treasury Group’s decision to no longer manage the Orion Australian equities fund as well as the merger of Evergreen Capital Partners with Freehold Investment Management. Both managers invested in property and in particular in Australian Real Estate Investment Trusts (A-REITs).
Treasury Group also sold its loan assets and equity stake in Treasury Asia Asset Management to Nikko Asset Management in October last year.
Treasury Group managing director Andrew McGill said the results were driven by “strong contributions from (boutique managers) RARE, IML and Celeste. The increase in the interim dividend reflects the growth in the underlying profitability of the business”.
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