Income funds a winner for Aust Unity
The investment division of insurance provider Australian Unity performed strongly in 2005, increasing its funds under management to over $3 billion for the 2005 calendar year.
The figure was up 17 per cent on the previous year.
Managing director David Bryant said the increase was predominately underpinned by fresh inflows, which totalled $525 million, not by Australia’s benign equities market, because most of its funds are income based.
In the year ahead, Bryant said the investment arm of the Melbourne-based company would look to form new strategic alliances with external fund managers to give investors access to asset classes it does not already cover.
The larger Australian Unity group, meanwhile, has not ruled out demutualising next year, but wants the membership to give a more positive indication before it makes a final decision.
The company has released a report setting out the pros and cons of demutualising, and in a letter to member’s chair Alan Castleman said the board’s opinion “was there is no compelling business reason to demutualise”.
The focus groups surveyed by Australian Unity suggest a demutualisation proposal would not achieve the level of support to make it happen, Castleman said. The company needs 75 per cent of members to vote in favour of demutualisation before it can proceed.
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