Institutional business drives down Contango’s FUMA
Contango Asset Management (CGA) has reported a drop of $141.6 million in funds under management and advice (FUMA) to $611 million due to the net decrease in its institutional business.
At the same time, the company said its Switzer Dividend Growth Fund continued to grow strongly, with a 12 per cent growth in FUMA since June, 2017.
Contango said, in a statement released to the Australian Securities Exchange (ASX), that as a result of the net outflows, it was reviewing its varying value of customer relationship contracts.
Also, the company’s earnings for the 2017 financial year would record a charge against customer relationships of approximately $0.5 million and a consequent reduction in deferred tax liability of $0.2 million.
The financial statements would also reflect an impairment of the remaining $6.8 million carrying value of its goodwill.
“CGA will continue to focus on increasing its FUMA and rolling out its sales and distribution strategy including via its investment in Switzer Asset Management Limited, which plans for further product launches in FY2018,” the statement said.
“The company is also reviewing its cost structure to ensure an efficient operating platform.”
AUTHOR
Oksana Patron
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