Aust Unity reports record inflows
Australian Unity has surpassed the $2 billion funds under management barrier for the first time in its 164-year old history after reporting record inflows of $438 million for the year ending June 30.
Australian Unity group managing director Rohan Mead says the growth, which push its assets under management to $2.3 billion, were largely due to inflows into the group’s traditional trust products and the Acorn micro-cap fund.
Property funds contributed to some of the inflows, although its popular Healthcare Property Trust was temporarily closed during the financial year and remains closed today.
“We have been building the structure of the funds management business for the past two years and repositioning the products, which has lead to record inflows.
“A number of products have received positive ratings and we have more products on adviser platforms which is also helping the inflows,” Mead says.
The financial planning arm of Australian Unity has $100 million of funds under advice and has doubled its revenues during the second year of operations to $938,000.
Mead says the business is still developing with further investment in the infrastructure of the operation and additional refining of its business model.
The group reported a pre-tax profit of $12.6 million for the 2004 financial year, which was up 78 per cent on the previous year, and an after tax profit of $8.1 million - up 25 per cent.
Revenues for the group were $405 million - an 11 per cent increase on the 2003 financial year.
Australian Unity chairman Alan Castleman says defining the mutual’s core business to health, financial and retirement living had bought benefits.
“We are pleased with the results across the group including an increase in market share for our health fund, increased support for our investment products, the profitable consolidation of our general insurance business after a period of rapid growth,” he says.
The company has almost completed the sale of its pharmacy business in Victoria with interest in one remaining outlet and near sale of another.
The pharmacy business lost $1.9 million during the 2004 financial year.
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