Australian Ethical continues FUM growth streak, surpasses $10bn

Australian Ethical’s funds under management (FUM) expanded 7 per cent from December to $10.33 billion at 31 March, marking a new record high.

In an ASX listing on Thursday, it said its FUM was underpinned by positive net flows and strong investment performance.

“Australian Ethical is delighted to have achieved a significant milestone this quarter, with FUM reaching $10 billion,” said managing director John McMurdo.

The fund manager reported positive net inflows of $137 million for the March quarter, driven by solid superannuation net flows due to new customer growth and growing superannuation guarantee contributions.

Australian Ethical further clarified that managed fund net flows were slightly positive, albeit impacted by continuing uncertain market and economic conditions.

Moreover, the firm saw strong investment performance during the quarter of $531 million, with some $380 million attributable to super, and approximately $150 million from funds management.

McMurdo highlighted that these results point to the success of the firm’s growth strategy, which has seen it increase scale to “serve the growing addressable market more effectively”.

“We are continuing to deliver on Australian Ethical’s Theory of Change, the dual purpose of which is to help people, animals and the planet thrive, and our customers prosper through their choice of ethical investments,” he concluded.

In its half-year results released in February, Australian Ethical recorded FUM of $9.67 billion – at the time, it was the fund manager’s record.

“This is a really strong first half result for Australian Ethical, and we’re pleased to report increases in FUM, customer numbers, revenue and profit,” McMurdo said at the time.

“Our growth strategy is gathering momentum and we are seeing an uplift in our key financial metrics as well as strong momentum on key strategic initiatives.”

It also reported investment performance during the first half of the financial year 2024 of $202 million, clarifying that strong investment performance during the September quarter of $325 million offset losses in the first quarter.

“It is encouraging to continue reporting positive net flows and solid investment performance during a period of continued market volatility. As a result, we continue to see growth in our revenue and remain enthusiastic about the opportunities that lie ahead,” it said.