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Reduced super fees sees net profit decline
Australian Ethical Investments has posted a 23 per cent decrease in net profit after tax to $1.97 million following their reduction of superannuation fees.
To shore up long-term sustainability the wealth manager has reduced super fees on key MySuper products by 0.67 per cent. Their strategy is to be at the 75th percentile of its peer group by 2020.
The company said the decrease in net profit after tax was also due to the transition to a new remuneration structure, and a further impairment on its property in Canberra.
The firm's financial year 2015 report found its superannuation clients grew by 20 per cent and its net inflows almost doubled to $179 million for the year to 30 June 2015, up 96 per cent.
The report said Australian Ethical posted a 32 per cent increase to $1.17 billion in funds under management thanks to new inflows and asset management performance.
Managing director, Phil Vernon said as investors become more frustrated with the lack of political action on climate change, they are looking for opportunities to use the power of their investments to drive positive change in the economy.
"We are also seeing the results of a period of operational review and renewal in recent years. The changes we made to the senior leadership team, remuneration structure, competitiveness of our products and business strategy continue to play out, and are reflected in our growth," he said.
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