Australian Ethical completes $5.5m fixed income acquisition
Australian Ethical has completed its acquisition of Altius Asset Management from Australian Unity.
It was announced in May that the firm would be acquiring sustainable fixed income manager Altius which would increase its funds under management to $12.3 billion.
The combined Australian Ethical and Altius fixed income capability will result in a sustainable fixed income team of seven, an expanded bond fund portfolio, and Australian Unity becoming one of Australian Ethical’s largest institutional clients.
Under the deal terms, Altius co-founders Bill Bovingdon, Chris Dickman and Gavin Goodhand will join the Australian Ethical investment team under chief investment officer Ludovic Theau.
On 25 September, chief executive John McMurdo said the deal had been successfully completed.
“The acquisition of Altius Asset Management is an important step in the successful execution of the Australian Ethical growth strategy.
“Altius is a leading purpose-driven fixed income manager with a team of six that will deepen our fixed income investment capability and ability to deliver sound investment returns while influencing a better future for people, planet and animals.”
Bovingdon added: “The Altius team are excited by the opportunities ahead of us – combining our deep expertise in responsible fixed income with Australian Ethical’s strong ethical heritage across multiple asset classes will enable us to deepen client relationships and support further growth.”
At the time of the deal’s announcement, Australian Ethical said it would pay $4.25 million to Australian Unity in cash upon transaction completion, subject to conditions, with an additional $1.25 million payable after completion, contingent on Australian Unity investment meeting certain transition steps and maintaining agreed minimum FUM targets.
In its FY24 results, Australian Ethical reported an 80 per cent growth in statutory net profit after tax to $11.8 million, up from $6.6 million in the previous financial year. The strong result was helped by $100.5 million in revenue, up by 24 per cent from $81.1 million in FY23.
The firm’s FUM growth was underpinned by net inflows of $607 million, an increase of 30 per cent from $470 million in FY23, primarily thanks to superannuation flows.
AUTHOR
Laura Dew
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