Koura reports another loss
Koura Wealth has reported losses for the year ended March as it prioritised growth.
Koura, which had $430 million in funds under management (FUM) at March 31 and has since increased that to $510 million, recently raised less than $1 million in fresh equity and founder and chief executive Rupert Carlyon says he’s confident that will be sufficient to carry the company through to profitability.
Koura had already been profitable at the operating level. “The issue is we continue to invest in growth initiatives, whether it be marketing” or taking on more people.
Koura’s net loss for the year eased to a little above $1.4 million from nearly $1.7 million the previous year with management fee income rising nearly 66% to nearly $2.1 million while administrative expenses were up 21.5% to $3.7 million.
“We’ve taken on a fair amount of extra cost to allow us to deliver growth,” Carlyon says.
Most of the growth in the Koura KiwiSaver fund has come from people switching from other funds – he says switching activity in the last three months “has gone absolutely nuts.
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