Australian Ethical’s funds under management (FUM) held steady at $9.20 billion over the September quarter, as negative investment performance was offset by positive net flows.
In a quarterly FUM update on Thursday, the ethical investment manager reported positive net flows of $114 million for the quarter, down from $172 million in the quarter prior.
Meanwhile, investment performance over the September quarter was negative $124 million.
“Australian Ethical has delivered another quarter of positive net flows, despite challenging market conditions more broadly,” said Australian Ethical managing director John McMurdo.
“Our diversified business model across both super and investments is serving us well, with consistent superannuation growth despite the market environment.”
According to Australian Ethical, the continued positive net flows seen over the quarter were underpinned by superannuation net flows of $117 million.
“Customer numbers continued to grow as more people entrust their retirement savings to Australian Ethical and superannuation guarantee contributions provide a strong annuity-based source of net flows,” it said.
Australian Ethical noted that its total customer base increased to more than 129,000 as at 30 September, up from more than 127,000 three months earlier.
While the firm said that its super net flows were “solid”, its managed fund net flows were impacted by “cautious investor sentiment” in response to broader market volatility.
“Despite the market challenges, this product category demonstrated resilience, with a modest net outflow of only $3 million for the quarter,” Australian Ethical said.
In its full-year results released in August, Australian Ethical reported a 48 per cent jump in funds under administration to reach $9.2 billion.
The firm attributed the growth to positive new flows, solid investment performance, and the completion of its successor fund transfer with Christian Super.
“Forty-eight per cent is an exceptional year, I’d love it to continue. But I think we’re well positioned to capture investors who are seeking to generate strong financial returns in the right way,” deputy chief investment officer John Woods recently told InvestorDaily.
“Our brand resonates well there. Superannuation continues to be a growing sector and, particularly with unemployment where it is, more people take more jobs, it’s good for super. So I think we’re well positioned to keep growing in that space.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.