AWM books 30 per cent profit slump
Australian Wealth Management (AWM) has continued to struggle in the current volatile markets, reporting a 30 per cent fall in net profit after tax and before non-recurring items of $23.4 million for the six months to December 31.
The company also reported a write-down of $155 million, with most relating to the reassessment of good will flowing from the merger of Select Managed Funds and AWM in 2006.
The company said in light of these write-downs, the directors had not declared an interim dividend pending its merger with IOOF CompanyName,23908 .
The company's announcement to the Australian Securities Exchange said in the six months to December 31, AWM saw its funds under management or advice, administration and supervision decline by a relatively modest 7 per cent to $56 billion in the six month period.
Commenting on the result, AWM managing director Chris Kelaher said the company's two major platforms, Spectrum Super and The Portfolio Service, were net flow positive for the period when the effect of pension payments was removed.
He signalled that the company would be seeking to consolidate its merger with IOOF and might look to growth once market conditions improved.
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Mike Taylor
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