Aust Unity posts record profit
Australian Unity has wrapped up the last financial year in a healthy state revealing that it made a record profit of $43 million based on good performance from its healthcare and funds management arms.
Funds management revenue for the 2000-2001 period was $20.5 million, which was slightly up on $17.7 million in 2000.
The funds management operation now has $1.47 billion of funds under management, boosted with the acquisition of property syndicator York Capital in October last year for $1.7 million, which brought in an additional $178 million of funds under management.
Australian Unity has also invested $1.6 million in micro-caps manager Acorn Capital. Acorn won a $20 million wholesale mandate in the 2000 financial year and now has $1 million of retail funds under management in an Australian Unity-branded product.
Inflows to some of Australian Unity’s funds were positive, with a $33 million rise in the Healthcare Property Trust, although the Property Securities Fund had a slight fall to $143.8 million of funds under management.
The interest in ethical funds was not reflected in Australian Unity’s product, which ended its first year with only $71,000 of funds under management.
The healthcare division of the friendly society’s revenue far exceeded any of the other divisions, bringing in $236 million of the total $305 million of revenues. This was considerably up on 2000’s $176 million of revenue for the division.
Australian Unity managing director Mark Sibree warns the strong healthcare result will not stand up in 2002 financial year and the emphasis will be on getting more funds under management.
Sibree says he was buoyed by the 2000 result, but believes the company can sell more products.
“Our strategy has been to develop a portfolio of complimentary businesses. If we are doing this well, it will help reduce volatility as one division delivers better performance while another is down,” Sibree says.
Sibree says an example of this was in the early nineties when Australian unity’s healthcare business was bolstered by the transfer of $13 million of revenue from other divisions. This was recently repaid to the funds management operation.
The society has boosted its general insurance business by buying Mansions Australia, an up-market insurer. Sibree says the insurance business is increasing, as there now is a team of BDMs selling to brokers and agents nationally.
Another growth area is the society’s pharmacies, but Sibree says there are no plans to sell financial services products from these outlets. The only pharmacy that was selling financial services products, in Melbourne CBD, is having the sales team moved to separate premises.
AUTHOR
Recommended for you
In this episode of Relative Return, host Laura Dew speaks with Andrew Mitchell, director and senior portfolio manager at Ophir Asset Management, about why he loves working in fund management and the lessons he’s learnt in a decade of running a firm.
In this episode of Relative Return, host Laura Dew speaks with Blackwattle Investment Partners managing director and chief investment officer, Michael Skinner, about setting up an asset manager and what he looks for in an investment team.
In this special episode of Relative Return, Momentum Media’s Phil Tarrant and Jordan Coleman discuss the publishing house’s expansion into greater coverage of the wealth management space.
In this episode of Relative Return, host Maja Garaca Djurdjevic speaks with Riley James, founder and chief executive of fintech SuperAPI, about creating a superannuation ecosystem and potential changes from the Quality of Advice Review.
