1 October – 31 December 2024
Australian Ethical Investment Ltd (ASX: AEF) has announced a new record in its Funds Under Management (FUM), reaching $13.26 billion as of 31 December 2024. This milestone represents a 27% growth for the financial year to date, reflecting strong net flows and positive investment performance despite some operational disruptions.
Key Highlights
- Retail & Wholesale Net Flows:
- Retail and wholesale channels delivered $173 million in net flows for the quarter, driven by superannuation contributions ($101 million) and increasing traction in the values-aligned channel ($72 million).
- Superannuation flows were slightly subdued due to a 7-week limited service period during the transition of superannuation administration services to GROW Inc.
- Institutional Net Flows:
- Institutional net flows recorded $58 million in outflows, primarily driven by seasonal fluctuations in the Altius fixed income funds. These funds, which cater to clients like Australian Unity, represent lower-margin operations with minimal revenue impact.
- Investment Performance:
- Positive investment performance contributed $190 million to the quarterly growth in FUM.
- The wholesale Australian Shares Fund showcased a 12-month return of 17.9%, reflecting the caliber of Australian Ethical’s investment team and their alignment with ethical investment principles.
Managing Director John McMurdo’s Statement
John McMurdo, Managing Director of Australian Ethical, expressed his satisfaction with the company’s robust performance:
“Achieving $13.26 billion in FUM is a testament to our resilience and commitment to growth. Even during a period of limited promotional activity due to the transition of our superannuation administrator, our diverse channels ensured strong results.”
McMurdo highlighted the successful transitions to State Street for custody services and GROW for superannuation administration, noting their contribution to improved operational efficiencies and future cost savings. He also emphasized the importance of ethical investment, particularly in the context of climate change:
“Recent extreme weather events underscore the financial and human cost of environmental degradation. We remain steadfast in our mission to deliver strong investment outcomes ethically while pressuring industries to address climate change risks.”
Funds Under Management Breakdown (as of 31 December 2024):
| Product Category | FUM (Sept 2024) | Net Flows (Retail & Wholesale) | Net Flows (Institutional) | Investment Performance | FUM (Dec 2024) |
|---|---|---|---|---|---|
| Investments | $4.26 billion | $72 million | -$58 million | $20 million | $4.29 billion |
| Superannuation | $8.69 billion | $101 million | – | $170 million | $8.96 billion |
| Total | $12.95 billion | $173 million | -$58 million | $190 million | $13.26 billion |
Note: Variances in totals due to rounding.
Looking Ahead
Australian Ethical anticipates stable superannuation flows in the second half of FY25 as the marketing schedule resumes following the administrator transition. With a strengthened operational platform and continued focus on ethical investment, the company remains poised for sustained growth and profitability.
