Wednesday, 23 February 2011

HALF YEAR RESULTS - 31 December 2010

Highlights

• Funds under management up 7% at $15.5 billion (for the 12 months) with new inflows into boutiques
• Normalised net profit maintained and expenses reduced
• Interim dividend increased from 12 to 14 cents – rise of 17%
• TRG well positioned for growth with no debt, no exposure to exotics and strong manager performance

 Media Release – Fund Manager Developments

Treasury Group Limited (ASX:TRG) has today reported a normalised consolidated net profit after tax of $5.23 million. This compares to the $5.40 million result from the previous corresponding period and a decline of 3% over the corresponding period.

Total funds under management at 31 December 2010 increased to $15.51 billion, a growth of $1.05 billion or 7.3%, on the previous corresponding year.

TRG Managing Director, Mark Burgess, said TRG boutiques were performing well and this was reflected in the overall growth in FUM.  “We believe an increase in FUM in excess of $1 billion is an important measure of the overall strength of our business model and confidence the market has in our managers.   Importantly, this growth comes at a time when many managers are reporting outflows and investor sentiment remains cautious.”

Highlights from TRG managers include:

• RARE saw continued growth in net new funds flow and the team strengthened with the addition of new senior staff
• Celeste, Aubrey and AR Capital, TRG’s newest managers, all showed net inflows
• TAAM impacted by the loss of institutional clients but strengthened overall by addition of senior portfolio manager and the development of an advisory panel comprised of some of Asia’s most experienced investors including Marc Faber
• IML team has integrated well since the merger with Cannae; performing well and ahead of its value style peers; experiencing increased institutional interest although still experiencing net outflows
• Premium Investors (PRV) developed an investment advisory committee and continued strong dividend payments
• GVI deepened its team with appointment of Grant Cullens as co-managing director
• Orion and Trilogy continued strong growth in funds under management
• New products developed for offshore investors including Aubrey Global Growth Fund, European growth – UCITs III and AR Capital’s Cayman Island Fund (to be launched in 2011)

Full ASX announcement and financial results follow. 

Media contact
Christine Harris
Financial Media Connections
0414 621163

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