Wilson HTM Investment Group (WHIG) has suffered a full-year preliminary net loss of $7.8 million after its structured products unit lost money and the company terminated its corporate finance agreement with Deutsche Bank.
The group's structured products business, Next Financial, had a weak performance that resulted in it posting an $8.5 million deficit in fiscal 2010, compared to a $900,000 profit the year before, WHIG said.
"The market for these products and the availability of financing, at acceptable cost and terms, has been challenging over the past 18 months," the company said in a statement.
"WHIG continues to focus on improving the performance of Next via further cost reduction and pursuing selective revenue opportunities.
"Integral to this is the integration of the Next business into the broader [WHIG], providing opportunities for our staff and clients by leveraging [WHIG] capabilities."
WHIG also had to pay a $14.4 million fee to Deutsche Bank to end its corporate finance services agreement with the global financial services firm.
Shareholders approved the termination on 10 June.
Despite the overall loss, WHIG's wealth management and capital markets divisions posted a profit.
Wealth management, which comprises financial advisory, stockbroking and funds management, posted a $9.1 million unaudited profit in fiscal 2010, compared to $6.7 million in the prior year.
Capital markets earned $2.5 million in fiscal 2010, compared to $4.2 million in the previous corresponding period.
During the year, WHIG's funds under management (FUM) rose 10 per cent to $2.2 billion, while its other asset management business Pinnacle posted a 79 per cent jump in FUM to $7.9 billion, WHIG said.
