Blue Sky NPAT jumps 130pc in first half
Blue Sky Alternative Investments saw a 130 per cent jump in underlying net profit after tax (NPAT) to $10.1 million, driven by increased investments from institutional investors from Australia and overseas, during the half year ending in December, 2016.
The company also said it benefited from long-term trends indicating investors were increasing their allocation to alternatives.
According to Blue Sky, investments from institutional investors increased from 25 per cent to 37 per cent of its free-earning assets under management (AUM) during that period and the AUM was expected to be between $3.1 billion and $3.3 billion by June, 2017.
The company also confirmed it was on track to meet its longer term target of $5 billion by June, 2019.
Blue Sky's managing director, Robert Shand, said that the company's performance during this period also benefitted from the "mainstreaming of alternatives".
"Long-term trends have seen investors increase their allocation to alternatives and we are benefiting from the same structural tailwinds as global alternative asset managers such as Blackstone and Partners Group," he said.
"Australia's fund management industry has $2.8 trillion under management, and with alternatives forecast to be our largest class in the next decade, the opportunity in front of us is enormous."
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
