BT Investment Management (BTIM) has benefited from improved equity markets and lower fund-related expenses to increase its revenue as funds under management remainied flat in the past six months.
The investment management company – formerly operated by BT Financial Group – reported a minuscule decline in their funds under management (FUM), which closed at $36.1 billion compared to $36.3 billion at March 31 2010.
BTIM CEO, Emilio Gonzalez, said BTIM remained as “steady as a ship” and put the closing FUM down to a flat market.
“If you look at the market over that period, there wasn’t much movement, it was actually upwards slightly,” said Gonzalez. “But we’ve had flow off our legacy book, but we know that’s just run-off especially in the last six months and we’ve had a lot of cash movement through that as well.”
BTIM also reported a cash net profit after tax of $15.6 million for the half-year ended March 31, amounting to a 10 per cent increase on the previous year.
Gonzalez said the increase was brought about by a higher market and continued positive institutional flows in the company’s core business.
“The 10 per cent increase in underlying profitability for the half-year is pleasing, brought about by a higher market and continued positive institutional flows in our core [excluding cash] business,” he said.
“This result reflects BTIM’s strong position in the marketplace achieved through our brand and through access to the Westpac distribution network.”
For the same six-month period, BTIM recorded total revenue of $61.4 million, an increase of 1 per cent on the previous comparable period.
While the company recorded slight growth in revenue, the company also cut back on expenses, reporting that pre-tax cash expenses for the period were $38.9 million, a saving of 3 per cent on the previous corresponding period.
The company put the decreases in cash expenses to lower fund-related expenses and the timing of operational expenses.