Australian Ethical sees 54% quarterly inflow boost
Australian Ethical has reported $10.4 billion in funds under management (FUM), up by 13 per cent during the June quarter.
The firm said it saw positive flows of $211 million during the three months to 30 June, up by 54 per cent from $137 million in the previous quarter.
This was divided by $200 million into superannuation and $10 million into managed funds.
Australian Ethical said inflows were helped by superannuation contributions which were boosted by record voluntary contributions and an increase in the Superannuation Guarantee.
In its quarterly update to the ASX, the fund manager said net flows into managed funds were also positive after being flat in the previous quarter as a result of market uncertainty.
“Despite the ongoing uncertain market and economic conditions, which affect discretionary inflows into products outside of superannuation, managed fund net flows were also positive for the quarter.”
However, negative investment performance, thanks to challenging market conditions in April, was $106 million during the quarter.
The flows meant FUM grew from $10.3 billion to $10.4 billion, helped by the inflows and strong investment performance of $626 million.
During the quarter, the firm announced it has entered into a binding agreement to acquire sustainable fixed income asset management business Altius Asset Management from Australian Unity, which will bring an additional $2 billion to the firm’s FUM.
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.
Australian Ethical will 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.
Managing director John McMurdo said: “Our continued growth reflects the fact that an increasing number of Australians want confidence that their money is invested in line with their values. Our conviction remains that this demand will continue to grow and that our business is well-positioned to capture this growth.
“Our business model has shown resilience through market and economic cycles. This continues to be a source of confidence, enabling us to deliver strong outcomes for all our stakeholders.”
Inflows over the 12-month period, the firm said, were $100 million for managed funds and $600 million for superannuation, which saw managed funds FUM reach $2.2 billion and superannuation FUM reach $8.3 billion.
AUTHOR
Laura Dew
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