GLOBAL - Barclays Global Investors (BGI), the world's largest institutional asset manager, increased operating profit 20% to £71m in a year of significantly lower stock market levels , it said. But assets under management declined by 4%.
Net fees and commissions increased £70m (16%) to £505m (2000: £435m). The increase, it said, was driven by a large increase in performance fees as a result of strong active product performance, increased securities lending revenues as a result of increases in stock lending volumes and spreads, and by higher transition fees due to increased business in client portfolio restructuring.
Management fees remained at a similar level as revenues from net new sales and cross-sales were offset by the impact of significantly lower market levels.
Operating costs increased £56m (15%) to £437m (2000: £381m), primarily reflecting higher performance related staff costs.
Total assets under management fell 4% to £530bn (2000: £550bn). This was the net result of increases of £42bn attributable to net new business, £15bn due to exchange rate translation movements and a reduction of £77bn attributable to adverse market movements. Assets under management consisted of £438bn of indexed funds and £92bn under advanced active management.
By Luke Clancy
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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