Profits grow at Fiducian despite flat inflows

financial-planning-group/

17 September 2002
| By Barbara Messer |

Listed financial planning group Fiducian has grown net profits by 14 per cent for the financial year ending June 30, 2002, despite lower than expected net fund inflows that were flat at $150 million on the previous year's result.

"We would have liked to see higher profits last year, but we spent a lot in up-front costs, setting up new businesses that won't start to produce profits until later this year," Fiducian managing director Indy Singh says.

Fiducian's net profits grew to $1.1 million from last year's figure of $1 million, and the group expects to further enhance profits during the current financial year, if its recent acquisition of retirement and investment planning firm Bodinnars Personal Financial Planners bears fruit by contributing to fee and management income.

Stagnant fund inflows were attributed to the weakened economic environment post-September 11, and to slower growth in the group's financial planning franchise.

"We deal with mums and dads who prefer to defer their investment decisions in uncertain market conditions, but this is a temporary phase," Singh says. This year, funds inflows have already increased on the back of the Bodinnars acquisition, he says.

Fiducian also experienced slower than expected growth in its network of financial planners, which currently consists of 17 authorised dealers. This was attributed to the competitive nature of the market and the significant amount of time it takes to entice new planners on board.

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