Australian Ethical FUM passes $10bn
Australian Ethical has seen its funds under management (FUM) reach $10 billion, driven by organic customer growth and superannuation.
In its quarterly funds under management, the firm said FUM was $10.3 billion as of 31 March 2024, up 7 per cent from the end of 2023.
Some $8.14 billion was held in superannuation and $2.19 billion was held in managed funds compared to $7.63 billion in superannuation and $2.04 billion in managed funds at the end of the previous quarter.
In the case of managed funds – which includes separately managed accounts – it was driven entirely by $0.15 billion in market movements while superannuation was driven by both market movements of $0.38 billion and $0.13 billion in net flows.
The firm reported strong investment performance of $531 million during the quarter.
Managing director, John McMurdo, said: “We’ve seen another quarter of positive flows due to continuing organic customer growth, increased superannuation guarantee contributions, and strong investment performance.
“This result points to the success of our growth strategy, which has seen us increase scale to serve the growing addressable market more effectively. We are continuing to deliver on Australian Ethical’s Theory of Change, the dual purpose of which is to help people, animals and the planet thrive, and our customers prosper through their choice of ethical investments."
The firm’s Theory of Change works to effectively fight climate change via research and foundation grants. It utilises global research called Project Drawdown by environmentalist Paul Hawken on the most effective solutions to address climate change which Australian Ethical uses to target initiatives across people, planet and animals.
It also funds new innovative projects via Visionary Grants and Strategic Grants to fund proven and scaleable projects across three themes of helping stop sources of carbon, supporting carbon sinks, and empowering women and girls.
Earlier this year, the firm launched an infrastructure debt fund which will provide capital for key Australian projects spanning renewable energy, social infrastructure and property projects, with a social or environmental benefit.
Infrastructure debt specialist, Infradebt, has already funded more than 40 renewables projects and said infrastructure debt typically offers stable and predictable cash flow and diversification, as well as a way to hedge market volatility and inflation.
AUTHOR
Laura Dew
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
