BT delivers despite lower revenue
BT Investment Management has managed to deliver on its prospectus profit forecast despite both lower revenue and a decline in funds under management for the six months ended March 31.
The company told the Australian Securities Exchange today that it had achieved a net profit after tax of $22.8 million for the six-month period. Its chairman, Brian Scullin, said the company’s directors were pleased the profit had been achieved amid challenging market conditions.
BT said that funds under management had averaged $40 billion over the past six months and had closed 9 per cent down, with net inflows of $1.1 billion having partly offset an 11 per cent drop in the market performance of funds under management.
It said that net inflows of $1.8 billion from institutional investors and higher margin clients had more than offset expected outflows from Westpac mandates.
Commenting on the outlook for the business, BT Investment Management chief executive Dirk Morris said that in the short-term it was likely there would be some slowing in industry flows but that this could be partially offset by the company’s ability to win market share, particularly with inflows from institutional clients.
He said long-term market fundamentals remained positive, underpinned by compulsory superannuation, and that BT Investment Management was positioned for growth.
AUTHOR
Mike Taylor
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