Lean Year for NZ Fund Managers: Salt, Mint, and NZ Funds Management

Highlights:

• NZ Funds Management's net profit rose due to a tax benefit, with significant dividend payouts.
• Mint Asset Management's profits fell despite a tax benefit, with no dividends paid.
• Salt Investment Funds saw a profit drop despite increased fee revenue and rising expenses.

NZ Funds Management

NZ Funds Management experienced a modest 63% rise in annual net profit to AU$1.2 million, primarily due to a significant tax benefit. The pre-tax profit dropped to AU$90,000 from AU$904,000 the previous year, with revenue falling 3% to AU$32.7 million and expenses remaining unchanged. Despite this, the company distributed AU$2.8 million in dividends, a decrease from the AU$8.1 million paid last year.

Investment management fees fell 4.4% to AU$29.4 million, while financial advice fees increased by 13.5% to AU$2.5 million. Performance fees plummeted to AU$500,000 from AU$1.3 million, while payments to key management and directors rose 16.4% to AU$9.3 million.

Mint Asset Management

Mint Asset Management saw a 44% decline in net profit to AU$789,258, despite a tax benefit of AU$606,581, compared to a tax payment of AU$560,092 the previous year. Revenue from customer contracts decreased by 8% to AU$7.1 million, while expenses rose by 16% to AU$6.7 million, resulting in a pre-tax profit of AU$482,677, down from nearly AU$2 million.

Performance fees more than doubled to AU$690,114. Mint did not pay any dividends for the second consecutive year. Fees charged for services by transferred employees increased by 33.1% to AU$3.8 million, and marketing expenses rose by 19.8% to AU$308,712. The Mint Australasian Equity Fund remained the top earner, though fees dropped to AU$1.9 million from AU$2.1 million, while the Mint Diversified Income Fund's fees fell to AU$897,454 from AU$1.7 million.

Salt Investment Funds

Salt Investment Funds reported a 34.2% decrease in annual net profit to AU$156,865, despite a 4.5% rise in fee revenue to AU$4.6 million, due to a 7.7% increase in operating expenses to AU$4.4 million. Significant expense hikes included a 29.8% rise in auditor remuneration.

Salt distributed AU$250,599 in dividends, up from AU$219,718. The Salt Long Short Fund generated nearly AU$1.2 million in fee income, up from just over AU$1 million, while the Salt NZ Dividend Appreciation Fund saw a decrease in fee income to AU$1.1 million from nearly AU$1.6 million.

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