GLOBAL - Barclays Global Investors (BGI) saw assets under management rise 10% to £781bn in the first half of the year, up from £709bn at the end of 2004.
Announcing its interim results, BGI said the growth included £33bn of net new assets, £32bn, with £32bn attributable to “favourable exchange rate movements” and £7bn as a result of “market movements”.
The rise in assets represents a £147bn increase in the year to June 30, 2005.
In addition, the firm reported a 60% or £91m increase in profit before tax to £242m, up from £151m at year-end 2004.
“BGI now has US$1.4trn of assets under management and continued to generate strong flows of net new assets and growth in higher margin products, reflecting ongoing investment in the business,” the firm said in its half-year report.
“BGI delivered strong investment performance in active products, with most funds outperforming their benchmarks. BGI also delivered further significant improvement in operating margin and improved the cost: income ratio to 59% (2004: 64%).”
Operating expenses, which grew 26% over the year to June 30, 2005, stood at £343m.
“Operating expenses increased... primarily as a result of higher performance based expenses and investment in growth iniatives including fixed income and alternative assets,” BGI said.
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