AustChoice rewards adviser shareholders
Adviser shareholders in AustChoice will be sharing more than $500,000 of dividends as a result of strong profits achieved during its half-year results.
The unlisted company made an operating profit of $870,812 for the six months ending December 31, 2000, up 90 per cent on the corresponding period last year.
Turnover for the period was up 117 per cent to $1.1 million, compared to the corresponding period ending December, 2000.
AustChoice managing director Roger Gumley says the company's performance has been exceptional during the first half of this financial year.
"This has been a very strong period of growth for AustChoice and this was achieved by the growing number of financial planners using our master trust," Gumley says.
"We have also turned this growth in revenue into a substantial increase in operating profit, a percentage of which will be paid back to the advisers as dividends."
Funds under administration at AustChoice stand at almost $800 million and Gumley expects the company to reach its target of $1 billion by the end of the financial year.
"When we achieve $1 billion of funds under administration this will generate, on an annualised basis pre-tax earnings of approximately $3 million."
AustChoice now has almost 300 advisers using the service.
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
