Australian Ethical’s profits are set to soar, propelled by strong growth in funds under management (FUM).
Australian Ethical expects to rake in between $4.2 million and $4.6 million for the six months ending 31 December, according to its earnings guidance and FUM ASX announcement.
Funds under management has increased 9 per cent to $3.72 billion as at 31 October 2019, compared to $3.42 billion at 30 June. The increase was driven by strong net flows of $0.17 billion, with positive investment performance contributing $0.13 billion.
The company’s share price has more than doubled over the last year.
“Australian Ethical has had a very strong first half so far, with the implementation of strategy well underway which has seen the successful delivery of the new content management system and website, new adviser portal and fee reductions on three of our super options,” the company wrote in a statement on the ASX.
“We expect strong growth in flows to continue into the second half of the year, while we maintain momentum on implementation of our strategic roadmap.
“The financials in the second half of the financial year compared with the first half will be impacted by higher operating expenses as we continue to invest in the growth of the business and strategic initiatives.”
In November, Australian Ethical slammed Prime Minister Scott Morrison’s plan to ban climate boycotts of the resource industry, calling it “bizarre”.