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.
AUTHOR
Mike Taylor
Recommended for you
In this new episode of The Manager Mix, host Laura Dew speaks to Nick Paul, institutional portfolio manager at MFS Investment Management to delve into everything small and mid-cap equities.
In this episode of Relative Return, host Laura Dew chats with Kellie Wood, head of fixed income and deputy head of fixed income and multi-asset at Schroders Australia, to discuss why fixed income is returning to favour after a 12-year wait.
In this episode of Relative Return, host Laura Dew speaks with Michael Hunstad, deputy chief investment officer and chief investment officer of global equities at Northern Trust Asset Management, to debunk myths around index investing.
In this episode of Relative Return, host Maja Garaca Djurdjevic chats with Robin Tsui, APAC gold strategist at State Street Global Advisors, to discuss gold’s role as a diversifier in portfolios.
