Executive Chairman's Address to Shareholders
Sydney, Oct 20, 2022 AEST (ABN Newswire) - As Executive Chairman and on behalf of the directors of Fiducian Group Ltd (
ASX:FID), I am pleased to present this report on the consolidated operating performance of Fiducian Group Limited and its controlled operating entities for the year ended 30 June 2022.
HIGHLIGHTS
During the financial year gone by, our 26th since inception, we have continued to capitalise on the main revenue earning segments of our business model - Platform Administration, Funds Management and Financial Planning. All these business arms 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.
Investment markets were steadily rising from June 2021 and preliminary financial results were exceeding budget targets. That is, until two unexpected events in February hit the global economy.
The first was the Russian military attack on Ukraine which dislocated supplies and prices rose sharply. Simultaneously, China received another COVID-19 scare. Its zero Covid policy prevented people from working and they shut down their ports. Consequently, financial markets fell sharply from February as investors weighed the possible damage to corporate profits, higher inflation and a resurrection of West vs East military rivalry.
We had our highest ever net inflows of $309 million over the year. However, the sharp declines in financial markets impacted our Funds Under Management, Administration and Advice (FUMAA) adversely and truncated further earnings growth expectations. Nevertheless, our business model is resilient and we again delivered a double digit underlying earnings per share growth for shareholders.
The acquisition of the financial planning business of People's Choice Credit Union (PCCU) and assimilation, absorbed a great deal of our management resources for induction, training and consolidating revenue. This is now completed and employees from PCCU have readily adopted our Fiducian family culture and IT systems, and are constructively supportive of our processes. Fiducian staff involved in the exercise have done an exemplary job and need to be congratulated.
Our principles of People, Planet and Profit stand firm. We are indeed fortunate to have a loyal and experienced management team and dedicated staff who have delivered seamless operations with efficiency under trying conditions to deliver a great client experience.
Management and the Board remain positive for further growth of Fiducian in the future. Wars always end and modern medicine finds cures for pandemics. Our expanded network of financial advisers is expected to deliver funds flows that exceed our recent record-breaking year. Significant efforts are being directed to distribution of new products and services and we remain on the lookout for further earnings per share accretive acquisitions of client bases. As is always the case, the recent volatility may subsequently be offset by strong financial market growth and we intend to capitalize on this transformation in the future, for the benefit of our shareholders, stakeholders and people.
Inderjit (Indy) Singh OAM
Executive Chairman
20 October 2022
*To view the full Chairman's Address, please visit:
https://abnnewswire.net/lnk/F516MP17
About Fiducian Group Ltd
Publicly listed Fiducian Group Limited (ASX:FID) is a successful end-to-end financial services company in this fiercely competitive sector in Australia. FGL is Australian-owned and operated. FGL provides:
1. Platforms for investment and superannuation
2. Funds management and investment
3. Financial planning and wealth management
4. Technology solutions for financial planners and their clients
Through the vision of founding member Indy Singh (Executive Chairman), the company was established in 1997 and listed on the ASX in 2000. Funds under Management, Administration and Advice (FUMAA) total $11.2 billion as at 31 October 2021.
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