Equity Trustees saw funds under management, administration and supervision (FUMAS) soar 19 per cent to $101 billion, while revenue was up 3.2 per cent to $95.4 million.
“Our strategy for investing for growth is bearing fruit, with significant new business obtained during the year, adding a range of new, high-quality clients,” said managing director Mick O’Brien. “All areas of the business performed well and would have delivered even stronger results were it not for the equity market downturn.”
Net profit before tax was down slightly, $30.3 million compared with $31.3 million in FY19. Expenses also increased 6 per cent, reflecting “continued investment in preparing for new business”. The company declared a final dividend of 43 cents per share, with total dividend for the year maintained at 90 cents per share.
“Equity Trustees is in a great position,” Mr O’Brien said. “We have established businesses that are well suited for these challenging times, and we have a number of newer growth businesses, a pipeline of opportunities and a strong balance sheet.”
“While market volatility will continue to influence the group’s financial performance, the outlook is positive.”
Trustee and Wealth Services revenue also increased 3 per cent, while Corporate Trustee Services saw revenue rose to 5 per cent supported by the UK and Ireland business continuing to build and attract new clients.
Equity Trustees also announced that chairman Jeff Kennett and Alice Williams will step down from the company’s board. Mr Kennett will be replaced by Carol Schwartz AO following the company’s AGM. Ms Schwartz is a non-executive director of the Reserve Bank of Australia, the former chair of the Industry Superannuation Property Trust, and a member of the advisory board of Qualitas Property Partners.
“2020 has been a difficult year for so many parts of society, but I am pleased that Equity Trustees has continued to perform strongly for those whom we act in matters of trust: our clients, our shareholders, and for those individuals and organisations we are able to support through philanthropic grants, as a result of the generosity and foresight of benefactors for whom we continue to act,” Mr Kennett said.
