BGI
Global fund manager BGI continues to attract investors and outperform its indices
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| Andrew Skirton |
Ask pension fund consultants in Europe, the US and Japan which fund manager they rank most highly on a global basis, and they will most likely answer Barclays Global Investors. The fund management house has gone from strength to strength over the past few years, expanding its product range and attracting an increasing number of institutional investors. Over 2004, BGI's total assets under management increased by 19% to $1.36 billion from existing clients buying new products and 100 new institutional clients from Europe, the US and Asia. In the first quarter of this year net new inflows of assets were already $36 billion.
With a keen eye on costs, BGI has become a hugely profitable business. Profit before tax excluding goodwill increased a hefty 82% over 2004 to £347 million ($631 million), and its cost/income ratio improved to 61% from 71% for 2003.
Its decision to broaden its product range to reflect the changing demands of investors has paid off.