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
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.