AUSTRALIAN ETHICAL FORECASTS FLAT TO 5PCT FALL IN FY08 PROFIT

Australian Ethical Investment Ltd (AEI) expects a flat to five per cent fall in its fiscal 2008 annual profit amid continued tough conditions in equities markets.

In fiscal 2007, AEI reported a net profit of $A1.82 million ($US1.74 million), up 34 per cent.

Its earnings for the 2008 first half were $1.08 million, up 41 per cent.

The Canberra-based group, which gives 10 per cent of its profit to charity and conservation projects, offers five managed funds and a retail superannatuion fund.

Group funds under management peaked at $643 million in December but have declined with market movements, the firm said.

During April through June the group incurred extra costs changing superannuation administrators.

AEI warned in February that its second half result would not be as strong as the first half, given decreases in global equity markets and economic uncertainty.

Its shares lost $2.00, or 5.88 per cent, to $32.00.

(AAP)

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