Another lean year for Salt, Mint and NZ Funds Management

The year ended March 2024 looks like another lean one for fund managers if the results of three managers lodged with the Companies Office are any guide.

Friday, July 12th 2024, 6:15AM

by Jenny Ruth

NZ Funds Management managed to squeeze out a 63% jump in annual net profit to $1.2 million, but only thanks to a tax benefit that accounted for almost all of that.

Its pre-tax result was just $90,000, down from $904,000 the previous year while revenue fell 3% to $32.7 million and expenses were flat.

Nevertheless, NZ Funds' owners paid themselves $2.8 million in dividends, although that was down on the $8.1 million payout last year.

The company's fees for investment management fell 4.4% to $29.4 million while fees for financial advice jumped 13.5% to $2.5 million, net of rebates.

Its performance fees fell to $500,000 from $1.3 million the previous year while the amounts paid to key management personal and directors, including retired principals of the group, rose 16.4% to $9.3 million.

Mint Asset Management's net profit for the year fell 44% to $789,258, even after a $606,581 tax benefit versus a tax payment of $560,092 last year.

While revenue from contracts with customers fell 8% to $7.1 million, expenses rose 16%to $6.7 million, leaving pre-tax profit at $482,677, down from just below $2 million the previous year.

The result was also after $690,114 in performance fees, more than double the previous year's $322,277.

Mint didn't pay any dividends in the latest year or the previous year.

Mint transferred employees to sister company from June 10, 2022 and the fees charged for their services jumped 33.1% to $3.8 million while marketing expenses were up 19.8% to $308,712.

Mint itemised the fees received from each of its funds and its Mint Australasian Equity Fund remained its biggest earner, but fees received fell to $1.9 million from $2.1 million.

The next best earner, the Mint Diversified Income Fund, also saw a drop in fees received to $897,454 from $1.7 million the previous year.

Salt Investment Funds reported a 34.2% drop in annual net profit to $156,865 despite fee revenue rising 4.5% to $4.6 million net of rebates, reflecting a 7.7% rise in operating expenses to $4.4 million.

The biggest expense increases were a 29.8% jump in remuneration of the auditor and a more than doubling.

Salt paid its shareholders $250,599 in dividends for the year, up from $219,718 the previous year.

Salt also provided details of its funds' fee income and its best earner is the Salt Long Short Fund with fee income of nearly $1.2 million, up from just over $1 million the previous year.

The Sals NZ Dividend Appreciation Fund was the next best earner with fee income of $1.1 million, but that was down from nearly $1.6 million the previous year.

Tags: Mint Asset Management Salt