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.”
