Australian Ethical has increased its funds under management by 41 per cent to $2.6 billion in the past year, largely thanks to a 23 per cent increase in superannuation membership.
In its result for the first half of the 2017-18 financial year, Australian Ethical revealed that its superannuation membership increased by 23 per cent to 37,699 members between 31 December 2016 and 31 December 2017.
Consequently, the fund manager saw large increases in its net inflows (up 63 per cent to $341 million, including institutional inflows of $139.6 million) and funds under management (up 41 per cent to $2.6 billion).
Net profit after tax was up 307 per cent to $2.3 million compared with the prior corresponding half year.
The eyebrow-raising increase in net profit is a result of the $2.2 million cost incurred in the prior corresponding half-year to remediate a pricing error in Australian Ethical's superannuation fund.
Underlying profit after tax for the six months to 31 December 2017 was nearly $2.2 million, which was down 5 per cent from the previous corresponding half.
Commenting on the result, Australian Ethical managing director Phil Vernon said, "As already flagged to the market, we have embarked on a step-change strengthening of our support infrastructure to ensure we remain resourced to effectively manage our vigorous growth."
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