Why Navigator Global Investments Ltd (ASX:NGI) shares are down on its FY18 results

Shares in Navigator Global Investments Ltd (ASX: NGI) have slipped 5.1% to $5.43 at the time of writing on the day of its FY18 results presentation.

Navigator shares had a bumper year – up 104% from its share price of $2.70 at this time last year, but today’s results failed to enthuse investors.

Navigator’s assets under management (AUM) jumped $7.2 billion over FY18 to $16.7 billion, driven by a $1.8 billion increase from its Lighthouse business.

Performance fee income jumped 388% over the year, but distribution costs also rose 23%, although operating expenses were down 25%.

Navigator revealed a 24% increase in employee costs related to bonus remuneration for Lighthouse staff, but its balance sheet remains healthy with US$38.2 million in cash and no loans and borrowings.

Navigator peers include Magellan Financial Group Ltd (ASX: MFG) – also releasing results today – and IOOF Holdings Limited (ASX: IFL) which handed down its results on Monday.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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