Australian Unityhas broken through the $2 billion funds under management (FUM) figure for the first time, on the back of a jump in inflows early this year — up 100 per cent on the same period last year.
Group managing director Ian Ferres told the group’s annual general meeting (AGM) in Melbourne last week that the company had made $2.1 billion in FUM.
He said that inflows for the first four months of this financial year were $120 million, which compared with total inflows of $180 million in the 2003 financial year, in turn up 33 per cent on the previous year.
“In the first four months inflows have jumped to $120 million, which is up 100 per cent on the corresponding period last year,” Ferres says.
However, the financial planning arm of Australian Unity lost $1 million in its first year of operations though it now has 20 planners.
“It is a start-up business and the $1 million loss is less than we expected. We expect to halve that loss this (financial) year and make a profit in the following year,” Ferres says.
Australian Unity chairman Alan Castleman told the meeting that the friendly society will not demutualise.
“Our mutual structure will deliver better value and service to the members. We will continue to maintain that view,” Castleman says.
Moves to change the friendly society’s membership structure have been on hold since the proposal was announced at the 2003 AGM, Castleman says.
“The changes to the membership structure still remain on board,” he says.
“But any changes will result in considerable changes to our IT structure and we will not wear these costs in this financial year.”
Castleman also announced there is to be a review of the composition of the Australian Unity board in the next year to see if there needs to be any changes.
