Australian Ethical has posted a 48 per cent boost in funds under management (FUM) for the 2023 financial year, with total FUM now sitting at $9.2 billion.
Before this, the firm’s June update saw funds under management reach a record $9.02 billion as at 31 May 2023, indicating a streak of continued growth.
Australian Ethical also said it experienced net flows of $172 million this quarter, bringing the yearly total to $470 million.
Superannuation flows remained particularly resilient this year at $600 million, while managed funds lost $140 million.
However, Australian Ethical reported that its full year investment performance of $608 million had largely been bolstered by the $266 million that came in during the three months to 30 June, with managed funds, as well as record super guarantee and super voluntary contribution amounts, all playing a part.
Commenting on the investment manager’s financial year results, managing director John McMurdo said: “Australian Ethical was pleased to see further positive growth in investment performance and net flows in June, with total FUM now at $9.2 billion, representing 48 per cent growth for the full year.”
Strong headline growth was also seen this year, with total customer numbers increasing over 50 per cent since 30 June 2022 to more than 127,000 at 30 June 2023.
Adding to this, the merger between Australian Ethical Super with Christian Super was finalised in November, which saw more than 28,000 new members join the firm.
Back in July 2022, Australian Ethical and Christian Super signed an SFT deed having explored a merger earlier in the year with both groups inking a memorandum of understanding in April.
In an ASX announcement in June, Mr McMurdo said given the investment managers movements this financial year, the business is now “better positioned than ever for further headline and earnings growth following the successful integration of the Christian Super successor funds transfer (SFT), and following positive investments’ returns, and organic net cashflows”.
“The higher level of funds under management now presents Australian Ethical the opportunity to both continue to invest in the business to capture the significant addressable market for responsible investing, and simultaneously see operating leverage emerge in the future earnings profile of the business,” Australian Ethical said last month.