The economic logic of UFS’ business is the profitability of our core margin business. This is supplemented by a managed funds offering, generating fee income.
The largest and core component is a commercial bank style of business, with a balance sheet that consists of deposit-style debentures and capital on the liability side, invested in a portfolio of low risk financial assets.
Debentures are mostly sourced from Uniting Church organisations, but approximately 12% are from UCAPT which issues debentures to members of the public.
The assets held on balance sheet include marketable securities, direct property (being divested, with only one remaining), a book of commercial property loans and some loans to Uniting Church organisations. All investments are managed in accordance with the Ethical and ESG Investment Policy, aligned with the UN SDG's.
As at 31 December 2019 the balance sheet was A$1.251 bn in size, with net assets of A$142 mn.
The managed funds arm of our business was expanded in 2017 by the launch of the Ethical Diversified Fund. Along with the Ethical Australian Equity Fund, UFS has just over A$400 mn in funds under management. Investors are almost entirely Uniting church organisations, with only a couple of small external unit holders at present.