PI Investment Management, the IFSC-based fund manager that poached some of Bank of Ireland's top asset managers in 2004, made a loss of Aus $5.3 million (€3.28 million) in the six months to end December 2005.
This compares with a loss of Aus $8.1 million in the same period in 2004. However, managing director Rory MacIntyre said he was not concerned with the rate of progress being achieved by the asset management firm.
The business picked up Aus $100 million of retail and institutional flows in the period, taking funds under management to Aus $2 billion, he said.
When PI Investment was set up in 2004, Aus $1.3 billion was transferred to it from Australia, home of its parent, the Perpetual Group. It poached four top fund managers from Bank of Ireland Asset Management. They were reportedly offered a €16 million share plan based on performance.
Managing director of the Perpetual Group, David Deverall, said it was not expected that PI Investment would break even over the next financial year and that it was unclear when it would break even. "We have picked up some money, and Aus $100 million is a good start - it is part of the process of gaining some momentum," he said.
"Into the future, we would like to see that tick up over time. But at what pace? When does it start to tick up? Who knows? You have a long-term investment horizon for this type of business."
The group announced increased profits of Aus $73.5 million in the period, up from Aus $65 million in the same period in 2004.
Mr MacIntyre said he did not believe the business was growing more slowly than had been estimated initially. "With institutional business, it can be difficult to make estimates," he said.
"The time lines involved can be six to nine months. The business can by nature be lumpy." Mr MacIntyre said the business had been licenced for about a year. "It's a slow burner," he said. - (Additional reporting, Dow Jones)
