Ethical investment manager Australian Ethical’s funds under management (FUM) stood at $13.9 billion as of 30 June.
Detailing its quarterly results for the three months to 30 June, it said it saw retail and wholesale net flows of $195 million which was mostly attributable to superannuation.
Following the completion of the administration transition from Mercer to GROW, the firm was able to resume marketing its superannuation offering and saw flows of $210 million.
“The number of members consolidating their super balances has increased after enhancements to the join process, while superannuation guarantee contributions continue to underpin stable ongoing positive net flows.”
In the institutional space, net flows were $61 million into its fixed income funds and mandates following the acquisition of Altius Asset Management, which completed in September 2024 and added $1.9 billion to the firm’s FUM.
Meanwhile, strong investment performance contributed $591 million. The fund manager flagged its fund had benefited from “limited exposure to resources and fossil fuels”. This was divided between $200 million to its investment arm and $390 million for its superannuation funds.
Managers also added alternative defensive exposures, bolstered allocations to private markets and active fixed income in light of the market volatility, Australian Ethical said.
This quarter’s flows led FUM to rise from $13.1 billion at the end of March to $13.9 billion, a gain of 6 per cent after a 1 per cent decline in the previous quarter. Over the financial year, FUM has risen by a third from $10.4 billion to $13.9 billion, thanks to total organic flows of $593 million over the 12 months in addition to inorganic flows from the Altius acquisition.
John McMurdo, Australian Ethical chief executiver, said: “Our strong fourth quarter result, and our full year FUM growth of 34 per cent reflects the ongoing disciplined execution of our strategy as well as the resilience of our ethical investment approach in the face of challenging economic and geopolitical cycles.
“The continued demand for our way of investing has delivered record super net flows of $209m in the quarter. Our
investment performance has also contributed to strong FUM growth, and I’m thrilled that we have been able to reward investors with strong returns during this period.”
The firm was identified by Money Management as the listed fund manager which saw the largest share price growth over FY25, rising by 45 per cent over the year.
Mark Simons, the firm’s chief financial officer, said the fund manager stands out against peers for its active ethical approach which is particularly attractive for younger investors.
“Our strong share price growth over the past financial year is a reflection of consistent execution against our strategy aligning to the increase in our addressable market,” he told Money Management.
“Every investment we make is made in line with our Ethical Charter which seeks to do good by people, animals, and planet. This appeals to our consistently growing customer base, and especially young Australians. In what has become an unpredictable market environment, it’s excellent to see our diversified business model, across both investment and super products, and asset base continue to remain resilient.”
