Australian Ethical hits $5b in FUM

Investment and super fund manager Australian Ethical has announced its funds under management (FUM) have surpassed $5 billion, meeting its target set in 2015 when the firm had only $1.4 billion in FUM.

The move, which represented a 16.9% growth for the quarter ended 31 December 2020, was driven by record net inflows as well as investment performance, the firm said. On top of that, the growth of the Australian Ethical’s funds was helped by fees that drove growth in asset values of $573 million for the financial year to date.

Performance of the Australian Ethical Australian Shares Fund against the sector over one year to 30 November 2020

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Source FE Analytics

“Back in 2015, we set the audacious goal of growing funds under management from $1 billion to $5 billion by 2020. It’s great to have met that target,” Australian Ethical’s chief executive, John McMurdo, said.

“Of course, 2015 was also the year that Australia and other countries around the world committed to the Paris Agreement on climate change, and the United Nations established the Sustainable Development Goals (UN SDGs).”

McMurdo said that Australian Ethical’s investment approach involved selecting investments with a positive impact on people, planet and animals while, at the same time, it followed strict due diligence regarding ethics, environmental impact, social responsibility and good governance.

“We think our approach proves that sustainability and outperformance can move in tandem. That’s because good does better: it’s better for your bottom line, and has a better impact for people, planet, and animals,” he said.

Performance of the Australian Ethical International Shares Wholesale against the sector over one year to 30 November 2020

Source FE Analytics