Australian Ethical posts strong funds and earnings growth
Listed socially responsible fund manager Australian Ethical Investment (AEI) has recorded a strong half-year performance with substantial increases in net and underlying profit after tax, revenues and funds under management.
In an announcement released to the Australian Securities Exchange (ASX) for the period to the end of December 2013, AEI recorded a net profit after tax of $1.215 million - an increase of 150 per cent compared with 31 December 2012.
Underlying profit after tax was up 170 per cent to $1.422 million while revenues increased 25.9 per cent to $9.744 million.
AEI stated it has increased its group funds under management by 13.3 per cent to a record level of $801.7 million, with net inflows of $33.5 million in the period compared to net outflows of $3.2 million in the previous period.
In its statement to the ASX, AEI stated that revenues had increased due to improved market conditions and positive net inflows across its superannuation and managed funds arms, driven by investment performance, improved brand awareness and successful marketing programs.
In September last year AEI was approved by the Australian Prudential Regulation Authority (APRA) to offer a MySuper product.
AEI managing director Phil Vernon said the results followed a recent repositioning of the business for long-term sustainability, with net flows coming via new clients at levels nearly triple of past years while costs were being kept low.
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