Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

31 October 2025

Home / Noticeboard 2021

Australian Ethical

  •   15 July 2021
  •      
  •   

Australian Ethical (ASX:AEF) FUM jumps 50% to $6.07B: Aussies vote with their wallets on climate change

ASX Announcement

Sydney, 15 July 2021: Australia’s original responsible investment and super fund manager Australian Ethical (ASX:AEF) has increased funds under management (FUM) by 50 per cent or $2.02 billion in just one year, racing to $6.07 billion as of 30 June 2021, up from $4.05 billion at 30 June 2020.

This was driven by record net flows of $1.03 billion for the year to 30 June 2021 - a 56 per cent increase on the previous 12 months - and strong investment performance of $0.99 billion.

Australian Ethical believes that its rapidly accelerating FUM is the result of thousands of Australians deciding to take climate action into their own hands and voting with their wallets, in the face of a government that appears unwilling to take any concrete action to address the issue.

“Australians are sick of a government that refuses to acknowledge the very real danger we are all facing when it comes to climate change,” said John McMurdo, CEO and MD of Australian Ethical.

“The ‘sticking our heads in the sand and doing nothing’ approach is simply unacceptable when we know Australia is going to be hit harder than many other countries by economic losses resulting from increasing climate impacts, such as bushfires.

“A few months ago, we released research that showed ‘climate change’ and ‘the environment’ were the number one drivers of investment decisions by individuals considering ESG factors. But, not only that, the research also revealed that it was your average Australian leading the charge by instructing their financial advisers to invest in climate-friendly options, not the other way around.

“We see this significant rush of funds into our ethical and climate-friendly superannuation and managed funds as another clear indication that the average Australian is continuing this drive. As a nation, we are collectively opening our eyes to the power of our money to address climate change in the face of an ambivalent and seemingly unwilling government,” Mr. McMurdo concluded.

The Lowy Institute’s Climate Poll 2021 showed 70% of Australians think Australia should “increase its commitments to address climate change”, 74% believe “the benefits of taking further action on climate change will outweigh the costs”, and 78% support “setting a net-zero emissions target for 2050”.

Yet Australia’s emissions per capita are three times the G20 average, and fossil fuels make up 93 per cent of its energy mix - one of the G20's highest - according to the Climate Transparency Report. 

Australia also received the lowest score for climate action out of any of the 193 members of the United Nations in a different report produced by the UN-backed Sustainable Development Solutions Network.

On top of the yearly jump in FUM, Australian Ethical’s quarterly FUM also increased by 12 per cent or $0.66 billion between 31 March ($5.41 billion) and 30 June 2021 ($6.07 billion). The increase was driven by record quarterly net flows and strong investment performance.

 

  •   15 July 2021
  •      
  •   

 

Leave a Comment:
Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Why I dislike dividend stocks

If you need income then buying dividend stocks makes perfect sense. But if you don’t then it makes little sense because it’s likely to limit building real wealth. Here’s what you should do instead.

Latest Updates

Investment strategies

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

Retirement

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

The ASX is full of broken blue chips

Investing in the ASX 20 or 200 requires vigilance. Blue chips aren’t immune to failure, and the old belief that you can simply hold them forever is outdated. 

Shares

Buying Guzman y Gomez, and not just for the burritos

Adding high-quality compounders at attractive valuations is difficult in an efficient market. However, during the volatile FY25 reporting season, an opportunity arose to increase a position in Mexican fast-food chain GYG.

Investment strategies

Factor investing and how to use ETFs to your advantage

Factor-based ETFs are bridging the gap between active and passive investing, giving investors low-cost access to proven drivers of long-term returns such as quality, value, momentum and dividend yield. 

Strategy

Engineers vs lawyers: the US-China divide that will shape this century

In Breakneck, Dan Wang contrasts China’s “engineering state” with America’s “lawyerly society,” showing how these mindsets drive innovation, dysfunction, and reshape global power amid rising rivalry. 

Retirement

18 rules for ageing well

The rules to age successfully include, 'the unexamined life lasts longer', 'change no more than one-eighth of your life at a time', 'nobody is thinking about you', and 'pursue virtue but don’t sweat it'.

Sponsors

Alliances

Site Map

About Firstlinks

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.