The Australian Ethical Investment Ltd (ASX: AEF) share price is on watch today after the company provided an update on its full-year 2019 (FY19) earnings guidance.
What did Australian Ethical announce yesterday?
Australian Ethical advised the market yesterday afternoon that its underlying profit after tax (UPAT) for the 12 months ending 30 June 2019 will be between $6.4 million and $6.6 million, a mid-point increase of 30% on the 12 months ended 30 June 2018 (FY18).
The company said its earnings guidance is based on unaudited management accounts, is subject to the finalisation of the audited statutory accounts and includes an after-tax performance fee of $0.45 million paid to Australian Ethical in its capacity as the Responsible Entity of the Australian Ethical Emerging Companies Fund.
Without the performance fee, the guidance range would be between $5.95 million and $6.15 million, which translates to a midpoint increase over the last 12 months of 21%, at the upper end of the guidance range advised in mid-April this year.
Management expects to report the company's full-year earnings in late August 2019.
How has the Australian Ethical share price performed this year?
Investors in the Aussie ethical wealth manager have had somewhat of a rollercoaster in 2019, with the company's share price currently trading 2 cents lower on its start-of-year price at $1.74 per share.
This is despite the company's share price climbing as much as 54% in the space of two months earlier this year before its share price slipped back to its starting price.
One big factor recently has been the resignation of its managing director late last month, with the Australian Ethical share price continuing to slide.
For those who are looking for exposure to the wealth management sector, I'd suggest checking out Magellan Financial Group Ltd (ASX: MFG), which has soared higher in 2019 and is showing no signs of slowing down anytime soon.
Another good growth option could be HUB24 Ltd (ASX: HUB), which is a leader in the software as a service (SaaS) sector. The company's share price has been broadly flat so far this year and could be a bargain buy.
