Fiducian reports record net inflows

Fiducian Group has reported its highest ever net inflows of $309 million for FY22, up 36 per cent on the previous financial year, with further growth also predicted in the future.

In its results for the year ended 30 June, Fiducian said that its gross revenue had increased by 18 per cent to $69.5 million and posted an 11 per cent lift in underlying NPAT to $15.7 million along with a 9 per cent rise in statutory NPAT to $13.3 million.

Fiducian’s funds under management, administration and advice (FUMAA) was impacted by the performance of financial markets over the period, but still grew 5 per cent to $10.9 billion.

Funds under advice (FUA) rose from $3.7 billion in June 2021 to $4.4 billion, with Fiducian noting that its acquisitions of financial planning businesses and higher net flows had been offset by what it believed could be “a temporary decline in the valuation of financial markets”.

Commenting on the results, Fiducian executive chairman Indy Singh said that the firm had continued to capitalise on the main revenue earning segments of its business model, namely platform administration, funds management and financial planning.

“All of them are supported by our fintech capability, which has produced in-house proprietary technology and software systems that allow us to innovate, lift productivity and subsequently generate profits for our shareholders,” he said.

According to Fiducian, its acquisition of South Australian firm People’s Choice Credit Union (PCCU) which was finalised in February had added $1.1 billion to its FUA and may contribute annual recording revenue of $6.4 million based on current estimates.

The firm said that it expected net inflows to rise further in 2023 as newer financial planners, especially those from PCCU and recent additions in the Northern Territory, began to “appreciate the many benefits of the Fiducian compliant process for clients”.

Fiducian’s current network includes 86 planners across 47 offices in Australia. 

“The board remains prudent, but is confident that the future of the business is positive and likely to continue to strengthen through organic growth and acquisitions of client bases that can benefit from the Fiducian process,” the firm said.

A fully franked final dividend of 14.90¢ per share was declared, bringing the full-year dividend to 29.70¢, or 10 per cent higher than the previous financial year.

“Management and the board remain positive for further growth of Fiducian in the future. Wars always end and modern medicine finds cures for pandemics,” said Mr Singh.

“As is always the case, the recent market volatility may likely be offset by strong share market growth in years to come and we intend to capitalise on this transformation for the benefit of our shareholders, stakeholders and people.”

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.