BT Investment Management's (BTIM) profit for the year to September 30 climbed as institutional inflows strengthened, while cash expenses fell.
Proforma cash net profit after tax (NPAT) rose 10 per cent to $40 million, compared to $36.2 million last year, a BTIM statement to the Australian Securities Exchange said.
Funds under management (FUM) stood at $35.3 billion, from $41.9 billion in the prior comparative period. BTIM received net inflows of $1.7 billion from institutional and wholesale clients in 2008.
BTIM's cash cost to income ratio improved to 61 per cent, from 65 per cent.
The group is looking to boost its suite of products and capabilities through the addition of property and alternative investments, BTIM chief executive Dirk Morris told InvestorDaily.
"We will be looking in places that our clients are quite keen to grow going forward, so in the Australian context it will be in the unlisted space," he said.
"Long/short hedge funds or absolute returns hedge funds are other areas we will be focusing on, because we are quite light when it comes to hedge fund exposures.
"They will be the two main domestic areas... we will potentially look offshore but at the moment the volatility is too high, so I am going to leave any international expansion till things settle down," he said.
"There is a lot of merger and acquisition opportunity emerging in those areas... so I think an acquisition is probably the most likely."
The group, with an ungeared balance sheet, has set aside $13.4 million for investment in new talent.
