Australian Ethical has leaned on continued superannuation inflows to cushion a weaker March quarter, with member growth and higher superannuation guarantee (SG) contributions helping offset market losses that dragged total funds under management (FUM) lower.
The ASX-listed ethical investment manager reported total FUM of $13.57 billion at 31 March 2026, down 3.7 per cent from $14.08 billion at the end of December, as negative investment performance of $0.63 billion outweighed positive net inflows across the business.
But the strongest support again came from superannuation, where Australian Ethical recorded positive net flows of $100 million during the quarter, with rising SG contributions continuing to underpin member money coming into the fund.
Superannuation FUM eased from $9.98 billion to $9.66 billion over the period, reflecting market-driven declines rather than weaker demand.
Australian Ethical also said new member joins rose 17 per cent compared with the prior quarter, reflecting the full-period benefit of restored Employment Hero platform functionality.
The company flagged that new join momentum should continue to translate into net flows in future quarters because of the lag between joining and full account activation, with the June quarter also expected to benefit from end-of-financial-year contributions.
Managing director John McMurdo said the group’s core super business remained resilient while newer channels continued to develop.
“Australian Ethical continued to deliver positive superannuation net flows and made strong progress across newer growth channels during the quarter. The diversity of our business model is supporting resilience while enabling us to build momentum beyond our core superannuation offering.”
The update reinforces how central super remains to Australian Ethical’s earnings, with positive member flows helping absorb volatility across investment markets and weakness in non-super channels.
Outside its core super business, the manager continued to build out what it has described as a second growth engine, launching the Australian Ethical Growth Opportunities Fund at the end of March.
The new private markets strategy has already secured a cornerstone institutional commitment of up to $125 million from the Clean Energy Finance Corporation, expected to be received in the June quarter.
Australian Ethical also picked up a new $50 million not-for-profit client during the period, with the first $20 million of flows received in March, alongside smaller middle market inflows.
The company said those wins helped provide some resilience against higher-than-usual redemptions in advised and direct channels during a volatile quarter.
Investment performance remained the main drag, with Australian Ethical saying heightened geopolitical uncertainty linked to the ongoing conflict in the Middle East contributed to increased volatility across equity and investment markets, resulting in negative investment performance of 4 per cent for the quarter.
