Aust Unity posts better bottom line despite adviser exits
Australian Unity has managed to increase advice revenue despite decreasing its number of advisers and authorised representatives over the past financial year.
The company’s full-year results announcement to the Australian Securities Exchange (ASX) has revealed the company reported a 2.8 per cent increase in profit after tax to $53 million.
However, in the advice area, the company pointed to its change of leadership team and the loss of advisers.
It said the number of advisers including limited authorised representatives had decreased from 194 to 184 with funds under management (FUM) decreasing slightly over the year to $6.2 billion.
“The net decrease in advisers and FUM was largely due to the departure of some non-aligned self-employed practices,” the company said, adding that some new self-employed practices had also been recruited.
“Despite the decrease in FUM, advice revenue increased 6.3 per cent to $58.3 million,” it said. “In addition, self-managed investment accounts constructed by the advice business grew in FUM by $38.6 million to $201 million.”
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
