Australian Ethical (ASX:AEF) has announced record full-year growth, with funds under management (FUM) increasing by 34 per cent to $13.94 billion as of June 30. This surge was largely driven by significant inflows from superannuation funds and the successful integration of the Altius Asset Management acquisition. Australian Ethical is an investment manager offering a range of ethical investment options. The company also provides superannuation products, ensuring investments align with ethical and responsible principles.
The fourth quarter results were bolstered by net flows of $195 million across both retail and wholesale channels, with superannuation leading this growth. Record voluntary contributions and streamlined member onboarding, following the transition from Mercer to Grow Inc, further accelerated the positive momentum. The superannuation division experienced net inflows of $209 million during the quarter, showcasing sustained investor confidence and increasing demand for ethical investment alternatives.
According to AEF chief executive John McMurdo, the company’s investment approach continues to demonstrate that ethical investing can yield strong outcomes while simultaneously promoting positive social and environmental impact. He highlighted that the robust fourth-quarter performance and the full-year FUM growth reflect the disciplined execution of their strategy and the resilience of their ethical investment approach in the face of challenging economic and geopolitical conditions.
The institutional channel also saw gains, recording $61 million in net inflows during the June quarter. The acquisition of Altius Asset Management contributed $1.93 billion in inorganic FUM and expanded Australian Ethical’s fixed income capabilities.
