FUM growth helps Fiducian to strong profit
Indy Singh
A 14.2 per cent increase in funds under management (FUM) for the six months to December 31 last year helped Fiducian Portfolio Services post a 48 per cent increase in first-half net profit over 2005.
The wealth manager posted consolidated profit after income tax of $2.2 million for the first half last year, compared with $1.5 million for the 2005 first half.
FUM in the Fiducian Investment Service and in the Fiducian Superannuation Service were $354.8 million and $776.8 million respectively.
This compares to $298.5 million and $692.5 million respectively as of June 30, 2006.
Managing director Indy Singh attributed the FUM increase to a “combination of investor confidence, improved market conditions and consistent inflows generated by our distribution network”.
He anticipates a “steady improvement in profits in coming years from organic growth, as well as raised revenues from external sources by employing its expertise in platform, administration, funds management and IT businesses”.
Fiducian’s consolidated operating revenues to December 31 last year were 18 per cent higher compared to the first half in 2005, and consolidated profits, before income tax, 46 per cent higher.
A fully franked interim dividend of 4.5 cents per share was declared.
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