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Equity Trustees profit jumps on outsourcing rise

By Reporter
 — 1 minute read

The trustee company has reported a more than 40 per cent rise in funds under management as it benefited from the growing industry trend to outsource fiduciary services.

Announcing its full-year results on Thursday, Equity Trustees said it had increased funds under management, administration and supervision (FUMAS) by 43 per cent year-on-year to $144 billion.

The group said it had also seen a 12 per cent rise in net profit after tax to $21.5 million and an almost 6 per cent increase in revenue to $101 million.

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“Equity Trustees continues to prove that its focused strategy and strong values are a powerful combination, driving continued growth during the year,” the company’s chair Carol Schwartz said.

“Our impressive funds and earnings growth were achieved in a challenging year, despite volatile equity markets and the ongoing global health crisis.

“It is particularly pleasing that during a tumultuous year in the markets, we were still able to provide healthy support to the for-purpose sector on behalf of our philanthropy and estates clients. During the year we distributed grants and bequests totalling more than $96 million.”

“The results were achieved even as we continued to invest in the high growth areas of the business, where our expertise is in demand,” Equity Trustees managing director Mick O'Brien said.

“Our superannuation business achieved exceptional growth during the year, with funds more than tripling from $11 billion to $33.6 billion. We are now trustee for more than 600,000 members across 15 super funds.”

Mr O'Brien said the group’s FUMAS growth would continue to underpin further improvements in revenue.

“Our balance sheet remains strong and we will continue to review opportunities for disciplined acquisitions in areas with greatest growth and/or synergy opportunities,” he said.

Equity Trustees profit jumps on outsourcing rise

The trustee company has reported a more than 40 per cent rise in funds under management as it benefited from the growing industry trend to outsource fiduciary services.

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