Investment manager BT Investment Management Ltd (ASX: BTT) jumped 7% to $10.38 today after posting some exceptional growth in funds under management (FUM) for the quarter ending March 31, 2015. Indeed, this might not have come as a surprise to some investors given the bullish start to 2015 for global equity markets.
The group's FUM at the end of the period was $77.1 billion, which is a healthy increase over the $70 billion recorded just three months earlier. The approximate 10% rise in FUM was almost matched by today's 7% share price rise as the net flow increase means BT Investments can expect a significant lift in annualised fee income.
Although the announcement is short on detail the majority of the FUM growth appears to have come from the open-ended investment companies (OEICs) and mutual funds BT likely runs internationally across differing asset classes.
The business is still majority owned by Westpac Banking Corporation (ASX: WBC) and has been steadily growing on the back of a strategy primarily based around growing into international markets.
Today's news suggests the strategy is starting to pay dividends as the stock touches record highs. The other salient factor is the ongoing strength of global equity markets, which are probably also supporting the shares prices of other global money managers like Macquarie Group Ltd (ASX: MQG) and Magellan Financial Group Ltd (ASX: MFG).
BT Investment's exceptional start to the year means it looks a stock to keep a close eye on.