Australian Ethical Investments shares soar
Shares in socially and environmentally responsible fund manager, Australian Ethical Investment, have jumped over 43 per cent in a month on the back of earnings upgrades in May, but the company says that will impact net profits.
Australian Ethical informed the market in May that it expected profits to jump by about 86 per cent, after its funds under management had increased by 31 per cent (to $1.53 billion).
Its share price then jumped from $63.00 (on 19 May 2016) to $90.00 (on 17 June 2016), however the company warned that it had to pay performance rights (as part of its employee's incentive scheme) and that would increase expenses and lower profits.
The share performance rights value would be determined off the share price on 30 June 2016, the firm said.
"A higher share price means higher expenses and hence lower profit," said the company.
The company estimated that if the share price remained at $90.50, net profit after tax (NPAT) would be $3.27 million. That was below its 19 May 2016 NPAT estimate, which was between $3.47 and $3.84 million.
Recommended for you
VanEck is expanding its fixed income range with a new ETF this week to complement its existing subordinated debt strategy which has received $1 billion in inflows this year.
Specialist global equities manager Nanuk has celebrated 10 years of its flagship New World Fund and is actively considering its next possible vehicle.
Australian equities manager Datt Capital has built a retail-friendly version of its small-cap strategy for advisers, previously only available for wholesale investors.
The dominance of passive funds is having a knock-on effect on Australia’s M&A environment by creating a less responsive shareholder base, according to law firm Minter Ellison.
