Investors reacted positively to the full year profit result announcement by the Westpac Banking Corp (ASX: WBC) aligned fund manager and financial service provider BT Investment Management Ltd (ASX: BTT) yesterday, sending the share price up 7.4% to finish the trading session at $11.35 which marked a record all-time closing high.
The stock has now gained a massive 88.5% in the past 12 months, putting the performance well ahead of peer IOOF Holdings Limited (ASX: IFL) which has returned 2.5% and the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) which is down 5%.
Result Highlights
- BT delivered a record result with a cash net profit after tax of $132.5 million, equating to 44 cents per share (cps)
- Dividends grew 6% to 37 cps
- The group reported a 28% rise in base management fees
- Net inflows of $5.7 billion were recorded taking total funds under management (FUM) to $78.4 billion
- Investment performance across BT's funds was strong with 97% of FUM exceeding respective benchmarks over three years and 99% exceeding benchmark over five years.
Outlook
While no specific guidance was given, management noted that the current FUM level is higher than the average level across the past financial year; that investment performance remained strong with a number of funds producing strong outperformance and performance fees currently accrued of $85.1 million; and that good FUM momentum had continued into the current year.
With the stock trading on a historic price-to-earnings ratio and dividend yield of around 25.8x and 3.2%, arguably the current share price of $11.35 accurately reflects the positive performance and outlook for the group.
