SINGAPORE (Feb 21): Global Investments, the mutual fund company incorporated in Bermuda, announced that its 4Q17 earnings surged to $21.8 million, compared to $0.3 million in 4Q16.
This brought FY17 earnings to $39.0 million, 128.1% higher than $17.1 million in FY16.
Revenue for the current quarter was more than three times higher at $21.4 million from $6.0 million a year ago, mainly due to the net gain on sale of investments of $16.8 million as compared to $0.3 million in 4Q16, but the increase was slightly offset by lower interest income and lower gain on financial assets designated as fair value through profit or loss.
Expenses for the current quarter was higher at $5.7 million compared to $3.1 million last year, due mainly to higher net foreign exchange loss of $5.3 million as a result of the depreciation of USD, AUD, EUR, and HKD against SGD.
During the quarter the group recorded gains of $6.1 million from net reversal of impairment expense, compared to a net impairment expense of $2.6 million in the previous year.
Other comprehensive income for the group amounted to a loss of $10.2 million in the current quarter compared to a $9.8 million gain in 4Q16, mainly due to the reclassification of fair value gain of $15.5 million to profit or loss following reversals of impairment and sale of available-for-sale (AFS) financial assets. The loss was slightly offset by a fair value gain on AFS financial assets of $3.2 million and a translation gain of $2.1 million.
As at Dec 31 2017, the group’s cash and cash equivalents stood at $88.1 million.
The group has declared a final dividend of 0.6 cents per share, which will be paid out on April 24.
On the outlook, the group will continue to grow its assets and seek new investments that will generate steady income and potential appreciation in capital to deliver regular dividends and achieve capital growth.
As at 11.20am, shares in Global Investments are trading at 15 cents.
