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
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
An independent expert has ruled the Perpetual deal with KKR is no longer in the best interest of shareholders in light of the increased tax liabilities.
The Australian wealth management firm has named a custodian for its MLC and OnePath businesses following an extensive tender process.
Global real asset manager CapitaLand Investment has announced a key acquisition from Wingate as part of its growth strategy in Australia.
