Treasury rides high on boutique momentum

A robust market with an appetite for boutiques has aided listed financial services firm Treasury Group to double funds under management for the year ending June 30, and increase net profit after tax four-fold from $1.2 to $6.3 million.

For the 2003/04 financial year, the group posted a 162 per cent increase in revenue, from $11.7 million to $30.7 million.

Total funds under advice grew from $2.38 billion to $5.10 billion, and according to Treasury Group chairman Lee LaFrate, this was attributable to the group achieving its goal of growth on top of two new investment initiatives.

“The future continues to provide for organic growth from our fund manager and selective opportunities to expand the portfolio of investments,” LaFrate says.

To this end, LaFrate notes the success of Confluence Asset Management, an initiative established by the group in July last year, brought in $27.5 million of funds under management in its first year.

Treasury Group provides administration and strategic management services to a number of boutique operations, with Investors Mutual a notable performer, posting an increase from $2.3billion to more than $4billion since last financial year.

Orion Asset Management also performed strongly over the period, after securing mandates with institutional clients as well as a retail alliance with Challenger International.

Treasury Group will pay a $0.25 fully franked dividend to shareholders.