HMC Capital grows FUM by 40% but profit slumps

The news: HMC Capital has recorded a 22% drop in statutory profit for the financial year, but has grown funds under management and declared a steady dividend.

The numbers: The Sydney-based fund manager posted statutory profit after tax of $57.1 million. Funds under management lifted 40% to $8.1 billion, and HMC said it was on track to reach its $10 billion FUM goal by year end. HMC declared a final dividend of 6 cents per share, 10% franked, bringing the full-year dividend to 12 cents, in-line with guidance.

The context: HMC has broadened its horizons from property to include private equity style investing, according to the AFR. The pivot includes a recent push to improve performance and simplification at Lendlease, of which it owns about 4%. According to HMC guidance, distributions would be held steady next year and funds under management will continue to grow.