Aus Ethical profit down 23 per cent

Aus Ethical profit down 23 per cent

Australian Ethical's profit has taken a hit as the fund manager reduces its superannuation fees, transitions to a new remuneration structure and continues to record impairments on its Canberra property.


Australian Ethical has posted a net profit after tax of $1.97 million for 2014-15, down 23 per cent on the previous year.

The fund manager's funds under management were $1.167 million, up 32 per cent on the previous year. Net inflows were $179 million (up 96 per cent) and revenues were $21.2 million (up six per cent).

"The progressive reduction of superannuation fees over the medium term continues to have a significant impact on revenues," Australian Ethical said in a statement.

"These fee reductions have contributed to the increased net inflows and offset the impact of the fee reduction. This will lead to a better, long-term, sustainable business with far greater impact.

"Other contributors to growth have been the increased demand for ethical investing, investment performance, innovative product design and improvements to the online application and consolidation processes," said the statement.

Australian Ethical managing director Phil Vernon said 2014-15 had been one of "significant growth and success".

"Our investment performance has been strong, net inflows are virtually double the previous year and our client numbers have grown dramatically," he said.

"More and more people are making ethical choices in their daily consumer purchases and we are seeing this flow on to their investment and savings decisions.

"We are also seeing the results of a period of operational review and renewal in recent years. The changes we made to the senior leadership team, remuneration structure, competitiveness of our products and business strategy continue to play out, and are reflected in our growth.

"We are pleased to maintain our dividend during this transitionary period," he said.

 

Aus Ethical profit down 23 per cent
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