Aus Ethical NPAT up 46%
Australian Ethical has posted a 46% increase in net profit after tax to $9.5 million for FY20 thanks to growth in new customers, record net inflows and a performance fee of $3.6 million relating to its Emerging Companies fund.
Revenue increased 22% to $49.9 million, including the Emerging Companies performance fee which delivered one-year returns of 20.6% above benchmark for retail investors and 21.4% above benchmark for wholesale investors. The $3.6 million performance fee was up 350% from FY19’s $0.8 million.
The firm announced its inflows were up 100% at $660 million due to a 20% increase in its customer base, with managed fund customers increasing up 16% and superannuation members by 20%.
Funds under management (FUM) for the full year increased by 19% to $4.05 billion. This was driven by the firm’s inflows and investment performance.
Australian Ethical chief executive, John McMurdo, said: “Our business model, our investment philosophy and our commitment to our purpose have enabled Australian Ethical to rise to the challenges posed by COVID-19.
“…we are in a strong position heading into FY21 with no debt, strong cashflows and positive net inflow momentum. We are focused on investing in the long-term growth of our business and realising the potential of our ethical investing portfolio construction.”
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
