Australian Ethical reaches $10 bn FUM

The ethical investor saw a 7% rise in funds under management to $10.33 billion for the March quarter on the back of new members and cash inflows into its superannuation arm.

Australian Ethical is an investment manager with over $10.0 billion in funds under management that provides investors with ethically aligned asset management products and long-term, risk adjusted returns.

The result was driven by positive net flows and strong investment performance.

The fund reported positive net flows of $137 million for the March 2024 quarter on the back of new member growth and an increase in superannuation guarantee contributions.

Managed fund net flows were marginally positive but impacted by ongoing market uncertainty and economic headwinds.

The super fund reported strong investment performance of $531 million during the quarter.

Managing Director John McMurdo said: "Australian Ethical is delighted to have achieved a significant milestone this quarter, with FUM reaching $10 billion.

"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."

A massive 88% of Australians want their super, bank accounts, and other investments, to be invested responsibly, Australian Ethical, in partnership with the Responsible Investment Association Australasia (RIAA) and the member-owned bank Teachers Mutual Bank Limited, found in March.

Three-quarters would switch providers if their fund doesn't align with their moral beliefs - and two-thirds would invest more of their hard-earned coin if they knew it was working to make a positive impact in the world.

Australian Ethical has been named as a global leader in ESG commitment, ranking among the 8% of Morningstar's ESG commitment rankings for 2024.

It dominates the sustainable funds market in Australia and New Zealand, with 16.3% of the total sustainable funds assets in the region.