(Sharecast News) - Asset manager Intermediate Capital Group posted a rise in first-half assets under management on Tuesday as its diversification strategy continues to bear fruit.
In the six months to the end of September, AuM increased 11% to €41.1bn, with €4.6bn of new money raised across 14 strategies. Group pre-tax profit on an IFRS basis was up 24% during the half to £153.4m.
Earnings per share ticked up to 50.8p from 43.6p and the interim dividend was lifted 50% to 15p a share.
Pre-tax profits at the fund management company grew 32% to £85m while the investment company saw profits rise 15% to £68.4m.
ICG noted that since it set its fund management company operating margin target of above 43% early last year, a number of existing fund strategies have raised larger funds, increasing fund management company profits. As a result, the group has decided to increase its target to more than 50%, "to reflect the maturing of existing strategies while maintaining capacity to invest in new fund strategies that will underpin the continued long-term growth of the group".
Chief executive officer Benoit Durteste said: "These strong results demonstrate our ability to attract assets to a broad range of new fund strategies that are adjacent to our existing portfolios. Our diversification has resulted in continued healthy fundraising results and the 32% growth in fund management company profits.
"We are well-positioned to deliver sustainable growth. Unlike traditional asset managers, we do not suffer short term outflows as a consequence of the movement in financial markets; we are maintaining or increasing average fee rates on an underlying fund basis. Our long fund life-cycles are designed to withstand economic cycles. This is underpinned by a disciplined attitude to the deployment of funds and proactive approach to realisations."
At 0955 GMT, the shares were up 6.4% at 1,590p.
21 Nov 2023 18:33
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