Profit drops at Milford as performance fees plunge despite strong returns

Blair Turnbull, Milford Funds CEO

Total fees for the year fell 13.7% to $232.3 million in the year, although its base management fees rose 24.4% while its performance fees fell to $1.1 million from $83.5 million the previous year.

“Performance fees are only earned when clearly established performance benchmarks are met or exceeded,” says chief executive Blair Turnbull.

“The market backdrop and the geo-political environment is constantly evolving and the expectation is for continuing volatility and challenging geo-political conditions, with a shifting mix of government and central bank policy,” Turnbull says.

Between 2016 and 2021, Milford Funds reported rising performance fees each year, starting from $8.9 million in 2016, but they fell to $26.4 million in 2022 from $68.2 million the previous year and they fell to zero in 2023 before bouncing back in 2024.