Investment manager Vgi Partners Ltd (ASX: VGI) announced its full-year result for the 12 months to 31 December 2019.
VGI Partners' Result
The investment manager changed its financial year end to 31 December in 2019 and the comparable data is only for six months, so information and percentage movements from the prior period are mostly not directly comparable.
Funds under management (FUM) increased 48% over the year to $3.1 billion. $300 million of this increase was due to a raising for VGI Partners Global Investments Ltd (ASX: VG1) in June, around $500 million was due to an initial public offering (IPO) of VGI Partners Asian Investments Ltd (ASX: VG8) and over $100 million was contributed by performance. VGI Partners' unlisted funds are closed to new investment.
Net management fees generated for the year were $32.4 million. A fee waiver for VGI Partners Global, that had been in place since inception in 2017 until IPO costs were recouped, came to an end in April 2019, it has been earning management fees since then.
The fund manager said that based on VGI Partners' FUM as at 31 January 2020 of approximately $3.3 billion, it has an estimated annualised net management fee of around $47 million.
FY19 performance fees amounted to $36.7 million.
Normalised net profit was $33.3 million, which is calculated by adding back from the statutry result $5.8 million of equity raising costs, $1.5 million unrealised fair value losses and $0.3 million IPO costs.
Statutory net profit after tax was $28 million.
VGI Partners dividend
The Board of VGI Partners decided to declare a final dividend of 9.3 cents per share, which equates to a payout ratio of 74% in the second half.
