Barclays 2008 Annual Report Download - page 62

60 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Investment Banking and
Investment Management
Barclays Global Investors
Barclays Global Investors (BGI) is one of the world’s largest asset
managers and a leading global provider of investment management
products and services. We are the global leader in assets and products in
the exchange traded funds business, with 360 funds for institutions and
individuals trading globally. BGI’s investment philosophy is founded on
managing all dimensions of performance: a consistent focus on
controlling risk, return and cost.
With a 3,000-plus strong workforce, we currently have over £1trn
in assets under management, for 3,000 clients around the world.
What we do
BGI offers structured investment strategies such as indexing, global asset
allocation and risk controlled active products including hedge funds and
provides related investment services such as securities lending, cash
management and portfolio transition services.
BGI collaborates with the other Barclays businesses, particularly
Barclays Capital and Barclays Wealth, to develop and market products
and leverage capabilities to better serve the client base.
Performance
2008/07
Barclays Global Investors profit before tax decreased 19% (£139m)
to £595m (2007: £734m). Profit was impacted by the cost of provision
of selective support of liquidity products of £263m (2007: £80m) and
an 8% appreciation in the average value of the US Dollar against Sterling.
Income declined 4% (£82m) to £1,844m (2007: £1,926m).
Net fee and commission income declined 1% (£19m) to £1,917m
(2007: £1,936m). This was primarily attributable to reduced incentive fees
of £49m (2007: £198m), partially offset by increased securities lending
revenue.
Operating expenses increased 5% (£57m) to £1,249m
(2007: £1,192m). Operating expenses included charges of £263m
(2007: £80m) related to selective support of liquidity products, partially
offset by a reduction in performance related costs. The cost:income ratio
increased to 68% (2007: 62%).
Financial review
Analysis of results by business
Key facts
2008 2007 2006
Assets under management
(£): 1,040bn 1,044bn 927bn
– indexed 653bn 615bn 566bn
– iShares 226bn 205bn 147bn
– active 161bn 224bn 214bn
Net new assets in period (£) 61bn 42bn 37bn
Assets under management
(US$): 1,495bn 2,079bn 1,814bn
– indexed 939bn 1,225bn 1,108bn
– iShares 325bn 408bn 287bn
– active 231bn 446bn 419bn
Net new assets in period (US$) 99bn 86bn 68bn
Number of iShares products 360 324 191
Number of institutional clients 3,000 3,000 2,900
Highlights
£1,8 4 4 m£595m
Income Profit before tax
Performance indicators
68
86
99
06 07
Net new assets $bn
08
666
631
512
06 07
Average net income generated
per member of staff £000
08