Harbour Asset Management reported a net profit after tax of about $1.2 million last year during a period that included its $6 million buyout of the Hunter global fixed income fund.
According to the Harbour annual accounts filed last week, the Wellington-based boutique “acquired the licensed manager rights to the Hunter Global Fixed Interest Fund… for an upfront purchase price of $5m and an estimated earn-out of $1m”.
As reported last September, Harbour bought the Hunter international fixed income fund – essentially a badged PIMCO strategy – from joint-equal owners Implemented Investment Solutions (IIS) and Tony Hildyard.
Hildyard, who founded Hunter in 2017, continues as head of the almost $1.2 billion global fixed interest fund, now operating under Harbour colours.
At the time, Harbour managing director, Andrew Bascand, said: “Harbour is a perfect fit for Hunter, sharing the same customer-first philosophy while bringing added resources and product offerings to the table. We are thrilled to be able to provide our clients with exposure to a responsibly invested and highly rated global bonds strategy.”
Overall, Harbour saw a slight decline in net profit year-on-year ($1.8 million in 2020) despite a big jump in fee revenue to more than $21 million compared to almost $17.8 million in the previous period.
Expenses rose from $15.3 million in 2020 to $18.7 million last year, which includes a $1.2 million booked loss on Harbour’s share of Formosa Wealth – the holding company for the Flint Wealth investment platform.
Harbour slightly increased its share of Formosa in February this year to 37 per cent from the previous 33 per cent in a move replicated by joint venture partner, Trustees Executors (TE): following the ownership adjustments, Australian firm Research IP now holds the remaining 27 per cent or so of Formosa stock.
Harbour is one of the few local fund managers with a December 31 reporting date. With Hunter, the firm now offers 16 portfolio investment entity (PIE) funds including newest product, the Sustainable Impact Fund launched last November.
The company is 77 per cent owned by NZ wealth management giant, Jarden, which raised about $60 million from shareholders this February to help fund its investment banking foray in Australia.