Australian Ethical’s funds under management soared 38 per cent to $6.94 billion in the first half of the financial year on the back of ongoing interest in ethical investing.
The fund manager reported a 38 per cent increase in operating revenue during the period to $35.2 million while the net profit after tax lifted 5 per cent to $5.4 million.
Customer numbers rose 22 per cent compared to a year earlier while net inflows moved 42 per cent higher to $0.6 billion.
Operating expenses during the first half increased by 45 per cent due to strategic hires, brand and marketing investment, technology initiatives, new product launches and M&A due diligence.
Australian Ethical CEO and MD John McMurdo said the firm had seen “continuing strong momentum” as a result of more Australians investing in line with their values.
“While the majority of the mainstream investment market now claims to be investing responsibly or following principles of ESG, it is clear that the most ESG capital is flowing to leading fund managers with a longer track record of ethical investment,” he said.
“As Australia’s original and leading ethical investor, we are well-positioned to capture a significant share of this rapidly growing market.”
Mr McMurdo acknowledged that current volatility was likely to continue in the future, which could potentially impact the company.
“Even with restrictions easing, the sweeping impact of Omicron shows that sentiment around the pandemic can still shift quickly, while inflationary pressures and political tensions are a front-of-mind concern for investors,” he said.
“And while we remain well-positioned to benefit from regulatory, policy, market, and investor tailwinds, any outlook is subject to economic and market conditions.”
Looking ahead, Australian Ethical flagged ongoing investment in its high growth strategy during the second half and said it would continue to deploy resources in strategic growth areas while exploring appropriate M&A opportunities to accelerate its growth.
“We remain focused on implementing our long-term strategic roadmap to capture the significant opportunities amid growing demand from retail and institutional investors for quality ethical investing solutions,” said Mr McMurdo.
Jon Bragg
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.
