Record growth for Aus Unity FS business
Australian Unity’s financial services business defied sluggish growth trends across the rest of the group to lift its funds under management (FUM) by a record $3.2 billion in the half year to December 2013.
However, the company overall reported a net profit of $6.1 million for the six months till 31 December 2013, a significant decline on the $11.3 billion reported in the same period in the previous year.
The comparative profit deterioration was attributed to a mix of high claims, one-off legislative costs and lower investment earnings.
“These matters aside, the interim result represents an encouraging position for the overall Group’s operations,” group managing director Rohan Mead said.
Mead said the financial services group’s growth - which saw it grow to $3.2 billion compared to $2.21 billion in the corresponding period the previous year - was “pleasing”, given the pressure and uncertainty around Future of Financial Advice (FOFA) reforms.
Australian Unity’s number of advisers declined marginally from 118 to 117, a statement on the Australian Securities Exchange (ASX) showed. The reduction was linked to grandfathering provisions, which kicked in in July 2013.
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