Australian Ethical Investments shares soar
Shares in socially and environmentally responsible fund manager, Australian Ethical Investment, have jumped over 43 per cent in a month on the back of earnings upgrades in May, but the company says that will impact net profits.
Australian Ethical informed the market in May that it expected profits to jump by about 86 per cent, after its funds under management had increased by 31 per cent (to $1.53 billion).
Its share price then jumped from $63.00 (on 19 May 2016) to $90.00 (on 17 June 2016), however the company warned that it had to pay performance rights (as part of its employee's incentive scheme) and that would increase expenses and lower profits.
The share performance rights value would be determined off the share price on 30 June 2016, the firm said.
"A higher share price means higher expenses and hence lower profit," said the company.
The company estimated that if the share price remained at $90.50, net profit after tax (NPAT) would be $3.27 million. That was below its 19 May 2016 NPAT estimate, which was between $3.47 and $3.84 million.
Recommended for you
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.
