Insight Investment gets set for overseas push as profits rise

 
Michael Bow
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ONE of the UK’s biggest money managers, Insight Investment Management, is plotting an international expansion after it posted a 38 per cent jump in revenues at its institutional business last year.

The manager, which is owned by BNY Mellon and is one of the top three managers of institutional assets in the country, increased assets under management to £203.7bn for the 12 months ending December, up from £168.3bn a year ago.

The company’s main institutional business, known for offering products that hedge pension scheme risk, saw pre-tax profits rise 22 per cent on the back of £163.9m in revenues, up from £118.4m a year ago.

In its trust business – which manages a smaller £7bn – higher management fees also helped bolster profits despite net inflow falling from £840m to £720m for the year. Institutional net fund inflows also fell over the year, dropping from £39.8bn in 2011 to £29.6bn at the end of last year.

Overall, pre-tax profits for the group hit £35m in all.

Parent BNY Mellon moved to merge Insight with another one of its subsidiaries, currency risk manager Pareto Investment Management earlier last year. Directors said the tie-up would lead to more expansion overseas.

“We are growing our European presence, notably in Germany and the Netherlands and, through leveraging BNY Mellon’s reach, we are planning a targeted international expansion, supported further by the acquisition and integration of Pareto in 2013”, directors said in the accounts.