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.