BGI Has A Good Year

Barclays Global Investors (BGI) delivered strong growth in profit before tax last year, increasing 51% (123m) to 364m (2005 241m). BGI says the performance was broad based by products, distribution channels and geographies. Net fee and commission income increased 47%

By None

Barclays Global Investors (BGI) delivered strong growth in profit before tax last year, increasing 51% (123m) to 364m (2005: 241m). BGI says the performance was broad based by products, distribution channels and geographies.

Net fee and commission income increased 47% (267m) to 837m (2005: 570m). The strong income performance was attributable to increased management and incentive fees, particularly in the iShares and active businesses. Incentive fees increased 41% (31m) to 107m (2005: 76m). Higher asset values, driven by good net new inflows and higher market levels, and a strong investment performance, contributed to the growth in income.

Operating expenses increased 41% (139m) to 481m (2005: 342m) as a result of higher performance based expenses, significant investment in key growth initiatives and ongoing investment in product development and infrastructure. The cost: income ratio improved to 57% (2005: 59%).

Total headcount rose by 100 to 2,400 (31st December 2005: 2,300). Headcount increased in all regions, across product groups and the support functions, reflecting continued investment to support strategic initiatives.

Total assets under management of 877bn remained in line with 2005 year-end levels (31st December 2005: 881bn). Net new inflows of 17bn and positive market move impact of 27bn were more than offset by the adverse impact of exchange rate movements of 48bn. In US$ terms assets under management increased by US$110bn to US$1,623bn (31st December 2005: US$1,513bn), comprising US$30bn of net new assets, US$43bn of favorable market movements and US$37bn of exchange rate movements.

«