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
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers