Crestone flags drop in FY20 earnings

In a statement, Crestone said it had recorded earnings before interest and tax of $10.8 million, down from $11.5 million in the 2019 financial year.

“The reduction in EBIT reflects further investments in growth and technology which reduced profitability in the short term,” the group said.

“Crestone has continued to invest in its client-facing technology solutions and in delivering enhanced access to exclusive investment opportunities.”

Crestone said it had added nine new advisers over the 12 months to June, contributing to a doubling of net new client money over the period to approximately $1 billion at 30 June.

Crestone chief executive Michael Chisholm said the group was focused on expanding the range and quality of investment opportunities it offered to its high-net-worth client base.

“Ultimately growth allows us to introduce better, and more exclusive, investment opportunities to our clients,” Mr Chisholm said.

“Our goal is to continue to bring world-class opportunities across all the different asset classes and from the top quartile investment managers to high-net-worth Australian investors.”

He added that the benefits of this strategy had been seen by the group’s clients during the COVID crisis, whose portfolios had generated a positive return despite extreme market volatility.

“Our balanced portfolio returns for FY20 were up approximately 3 per cent, for the same period the ASX 200 was down over 7.5 per cent,” Mr Chisholm said.

“For the financial year to date our balanced portfolio returns have continued to outperform. So, you see the impact of true diversification and astute instrument selection – it separates us from other wealth managers.”

Mr Chisholm added that he expected socially responsible and impact investing to play a significant role in building diversified client portfolios in the future.