Treasury Group profit takes a hit
Restructuring expenses and 'difficult conditions' in the funds management industry over the past year have resulted in a 32.5 per cent drop in Treasury Group's profit.
The group announced a consolidated net profit after tax of $6.75 million for the 2011-12 financial year - down from last year's profit of $10.05 million.
The company received $3.95 million in total revenue, along with $11.49 million as its equity share from its associates. The group also incurred $8.9 million in expenses.
Treasury Group chairman Mike Fitzpatrick said the previous 12 months had brought "significant change" to the group, following Andrew McGill's commencement as chief executive in July 2011 and his subsequent review of the company.
"Since [July 2011] we have seen the acquisition of interests in two new businesses in Evergreen Capital and Octis Asset Management; cost control and efficiency initiatives have been undertaken in the business; and there have been restructuring initiatives undertaken in underperforming boutiques," McGill said.
The Treasury Group result includes $1.3 million of expenses "largely related to the action taken to restructure underperforming boutiques and redundancies", he added.
Treasury Group also announced a fully franked final dividend of 20 cents per share, to be paid on 26 September 2012.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The firm has appointed Aware Super’s Damian Graham as group chief investment officer to unify its life and funds management teams.
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
