Full-year result "disappointing": Wilson
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Samantha Hodge is a journalist with InvestorDaily, a Morningstar publication.
Wilson HTM Investment Group (WIG) has posted a "disappointing" result for the year ended 30 June, with decreases in both funds under management (FUM) and revenue.
In its annual report to the Australian Securities Exchange, the group cited reduced equity market valuations and lower income from structured products for its $11.4 billion FUM, down 5.6 per cent from $12.1 billion in the previous year.
The FUM decline comprised Wilson HTM's 19 per cent dip to $1.4 billion and Pinnacle's 3 per cent fall to $10 billion over the period.
Group revenues from ordinary activities also fell 46.8 per cent to $74 million due to sustained weak conditions, which caused a delay of corporate equity raisings and cautious investor sentiment, the group said.
"The financial year 2012 result is disappointing in a year when progress has been made in both the Wilson HTM business of capital markets and wealth management and business investment, which includes Pinnacle Investment Management," the report said.
"While fixed costs in Wilson HTM were reduced by 11 per cent during the year, the group recognises that fixed costs must continue to be reduced in order for the group to operate successfully during any market conditions."
Priorities for the year ahead include growing adviser numbers, increasing revenue and expanding service offering for Wilson HTM's wealth management business.
Wilson's Pinnacle business will focus on securing new FUM mandates and continuing to support growth in its boutiques.
"In the near term, the group's return to profitability will be closely linked to improving investment markets and investor sentiment," the company said.
In July, Wilson said that 11 client-facing personnel were serving notice periods prior to their "termination or resignation".
In the statement, Wilson said it would be "premature" to assume that the staff losses would have a "material financial impact".
Out of the 11 advisers, six resurfaced at Macquarie and the remaining five were appointed at Ord Minnett.
Earlier this month, Wilson commenced legal proceedings against Ord Minnett over its recruitment methods of the five advisers.