Profits rise 23% at Govett

BETTER margins boosted profits at Govett & Company, despite a drop in funds under management from dollars 5.8bn to dollars 5bn, writes John Willcock.

The Anglo-American investment group, which owns the UK fund manager John Govett, made dollars 22.8m before tax in the first half, a 23 per cent rise.

Income from institutional fund management and mutual funds grew 32 per cent to dollars 8.4bn due largely to the improved margins.

Ian Whitehead, chief financial officer, said there was good demand for Govett's core products from institutions, which account for two-thirds of the company's business.

Funds under management are set to rise by pounds 1.4bn after the acquisition of North American Trust Company for dollars 3.8m.

Mr Whitehead said Govett would add a New York Nasdaq quotation to its London listing shortly. Its American depositary receipt programme and its British share buy-back policy would then diminish in importance.