GLOBAL - Barclays Global Investors delivered strong investment performance as profits rose 61% to £542m (US$946m) in 2005, while net new assets under management reached $88bn.
John Varley, Barclays Group chief executive said 2005 constituted a year of strong headcount growth for its investment arm: “BGI achieved outstanding results. Assets under management now exceed US$1.5trn.”
Naguib Kheraj, Barclays Group finance director said income growth of 48% for BGI was driven by significant increases in management fees, incentive fees, and securities lending revenues. “Operating expenses rose 40%, reflecting higher performance based compensation and significant investment in the platform and in innovative new products,” said Kheraj.
Overall, total profit for Barclays Group before tax rose 15% to £5.3bn ($9.1bn).
A significant level (40%) of overall profits in 2005 came from outside the UK, and Varley said the Group was looking to increase this figure in the future, and would continue targeting the fastest growing economies.
“We continue to invest in Asia through Barclays Capital and BGI, which represent our principal sources of activity in that part of the world.”
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