Steady results for Treasury Group in difficult year
Treasury Group has announced an increase in funds under management (FUM) but a decrease in net profit after tax (NPAT) in what it describes as a "difficult year" for funds management.
While FUM increased almost 14 per cent to $16.7 billion, normalised NPAT was $9.72 million, a decrease of 4.5% over the year, the group announced in its full year financial results.
The group will pay a fully franked final dividend of 20 cents per share bringing the total dividend to 34 cents, up almost a third on the previous year.
"The past twelve months have been a difficult year in funds management," said TRG chairman Mike Fitzpatrick.
"The heightened level of caution among investors, particularly retail investors, reflects the recent volatility of global equities markets," he said.
TRG chief executive Andrew McGill said although the consolidated profit was down, growth in FUM and underlying aggregate earnings at Group boutiques were impressive in the context of volatile financial market conditions.
"TRG's normalised net profit after tax was marginally down, this was largely due to continuing investor caution impacting a number of managers," he said.
"Our multi-boutique strategy will remain at the core of Treasury Group's business, however, a strong balance sheet and the growth of existing boutiques provide financial capacity to consider a broad range of opportunities in future," he said.
Investment performance during year was generally strong, relative to benchmarks, and there were strong net fund flows, with institutional flows increasing, particularly at RARE Infrastructure, the group stated.
However, retail investor confidence remains weak and net outflows were experienced at Investors Mutual despite excellent performance and ratings upgrades, TRG stated.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.