Australian Ethical net profit up in June
Australian Ethical Investments has reported a 53 per cent increase in its net profit after tax (NPAT), counting year-on-year, which was driven by strong growth in net flows and growing investor demand for ethical investing.
NPAT for the full year ended 30 June stood at $3 million while revenue grew by 8.8 per cent to $23 million compared to the previous corresponding period.
Funds under management (FUM) increased to $1.56 billion against $1.17 billion a year earlier with a growth being driven by a combination of new inflows and asset management performance.
According to the company, other significant items that impacted its financial results included strong growth in net inflows, provision for unit pricing errors, impairment of a building held in Canberra and reducing average revenue margin.
Australian Ethical managing director, Phil Vernon, said the strong results were mostly attributable to increased demand among investors for responsible investments.
"We can see firsthand that increased shareholder and investor demand for responsible investment is shifting capital out of the old fossil-fuel based economy in to a new economy based around renewable energy, improved energy efficiency and sustainable products," he said.
"Ethical investing is at tipping point. As investors become increasingly concerned about the effects of climate change, they become more frustrated with the lack of political action and look for opportunities to use the power of their investments to drive positive change.
"We believe the growth trajectory of ethical investment is set to continue."
AUTHOR
Oksana Patron
Recommended for you
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
