BTIM attributed its strong profit to inflows offshore, a better mix of assets, higher funds under management and exceptional performance fees.
Speaking at an investor presentation yesterday BTIM chief executive Emilio Gonzalez said the result demonstrated the growth of the business and reflected upon the strategies implemented by BTIM within the past few years.
“We are now in a position to capitalise on the improvement in investment markets backed by strong investment performance, and also the expansion of asset management capabilities across different regions,” said Mr Gonzalez.
“We are also seeing strong signs of early support for some of our newer strategies that we’ve been working on over the last year or two.”
The results indicated overall fee revenue for the six months increased 91 per cent from the previous corresponding period up to $255.3 million while funds under management rose 26 per cent to $61.3 billion.
BTIM said the $2.2 billion increase in funds under management was the result of positive market movement and investment outperformance, net inflows of $0.7 billion, and a positive foreign exchange translation of $0.9 billion.
Mr Gonzalez said BTIM’s offshore business, J O Hambro Capital Management, generated $1.5 billion in net inflows during the period through its higher margin wholesale channel, which includes retail planners through platforms, high net worth investors and the private bank advisory channel.
He said this is a channel where BTIM plans to increase its exposure as margins tend to be higher.
The Australian business experienced net outflows of $0.8 billion, mostly in its lower margin cash and fixed income margin cash and fixed income products and from the ongoing structural decline in the legacy book.
Mr Gonzalez said BTIM will continue to invest in new teams, product development and in building out its distribution capability.
“Diversification across investment styles, markets and channels is an important part of building on the current strength in the business and we see continued growth offshore and a number of new product opportunities that match investor demand,” said Mr Gonzalez.
“We are particularly pleased by the growth momentum building in the US, and the success of new products which are adding to our growth story.”
