Kleinwort Benson Investors’ profit leaps to €10m

Amundi snaps up Dublin asset manager, leading to name change and further growth

American connection: KBI Global Investors has offices in San Francisco, New York and Boston. Photograph: Eric Risberg/AP Photo

American connection: KBI Global Investors has offices in San Francisco, New York and Boston. Photograph: Eric Risberg/AP Photo

 

Dublin-based asset manager Kleinwort Benson Investors recorded a consolidated pre-tax profit of close to €10 million last year driven by new client mandates in North America and Asia.

This represented an increase of about 50 per cent on 2014 for a company that was subsequently subject to a change of ownership at the end of last month. Amundi Asset Management acquired 87.5 per cent of the Irish firm, with the management team and key employees buying the balance. The company has also changed its name to KBI Global Investors.

Accounts filed recently show that Kleinwort Benson Investors International Ltd made a pre-tax profit of just under €5.4 million while Kleinwort Benson Investors Dublin Ltd achieved a surplus of €4.6 million.

The companies had combined net fee and commission income of €30.8 million in 2015, up from €24 million in 2014.

The consolidated operating income rose by 28 per cent, while its operating margin rose year-on-year from 30 per cent to 35 per cent.

Assets under management rose to more than €8 billion from €7.7 billion a year earlier. New mandates included one with the Korea National Pension Service, one of the largest pension funds globally.

Speaking to The Irish Times, Mr Hawkshaw said the new ownership structure had given the company a “great opportunity” to grow its business, particularly in Asia and continental Europe. “These are regions where we don’t have a large number of clients,” he said.

In terms of current trading, Mr Hawkshaw said growth had continued. “We have continued to grow our assets under management in a relatively flat market,” he said.

The company has also opened an office in Boston this year, to complement its offices in New York and San Francisco. Its client base in North America has grown significantly in recent years, from just under $1 billion in December 2012 to $5 billion as of March 2016.

KBIGI employs 62 people across its operations. It has achieved growth in assets under management of 28 per cent on average per year between 2011 and 2015.

Amundi is the largest European asset manager with more than €1 trillion worldwide.