Fisher Funds Management reaps fatter fees as funds out-perform

Friday 21st October 2011 1 Comment

Fisher Funds Management enjoyed a healthy performance bonus in the 2011 financial year as its bevy of funds beat their benchmarks for the period.

The fund manager made a profit of $4.3 million in the 12 months ended March 31, up from $3.1 million a year earlier, according to financial statements lodged with the Companies Office.

Fee income surged 43 percent to $12.9 million with the bulk of that uplift from a jump in its performance fee to almost $3 million, from just $468,000 a year earlier. Management fees, which are based on the funds’ gross asset value, rose to $9.5 million from $8.3 million.

That result came in a period where most of the fund manager’s funds outperformed the NZX 50 index on an annual basis, which advanced 5.3 percent in the 12 months through March.

The accounts show Fisher Funds’ owners were paid a dividend of $2.2 million in the latest year, down from $2.9 million in 2010. So far this year it has declared dividends of $1 million.

The fund manager’s staff did better in 2011, with entitlements and benefits up to $4.8 million from $3.2 million a year earlier.

Since balance date, the funds haven’t performed as strongly as markets sank in recent months after Standard & Poor’s downgraded the US credit rating and Euro-zone nations struggled to come to grips with a fragile banking system and high levels of public debt.

In New Zealand, the stock market’s benchmark index has dropped 4.2 percent since March 31.

“It’s not the end of the world, but it is a tougher world to operate in, and it doesn’t feel like a significant upturn is lurking around the corner,” managing director Carmel Fisher said in her latest monthly newsletter.

“We wouldn’t be at all surprised to see some more market rallies between now and Christmas – remember there are some good things happening out there – but we’re going to have to tolerate the dips in between.”

The fund manager boosted its footprint in the KiwiSaver market, acquiring the members of the now-defunct Huljich KiwiSaver scheme. That added about 87,000 members with a net asset value of some $191 million. The purchase was funded by a combination of bank debt and equity.

BusinessDesk.co.nz

Comments from our readers

On 22 October 2011 at 11:19 am Graeme said:

Well, they didnt make all that profit from getting it right with Barramundi. Original shares cost $1 now down to 63 cents. Pathetic.