Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

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.

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

The rubbery numbers behind super tax concessions

In selling the super tax, Labor has repeated Treasury claims of there being $50 billion in super tax concessions annually, mostly flowing to high-income earners. This figure is vastly overstated.

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Latest Updates

Taxation

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

7 key charts on the state of the Australian property market

The Australian property market stirs fierce debate - often bullish optimism versus crash predictions. But beyond the noise, seven charts reveal what's really driving prices and the outlook for residential real estate.

A simple alternative to the $3 million super tax

Division 296 aims to introduce improved fairness into the superannuation system, yet is overly complex. This scours the world for better ideas and suggests a simpler alternative which can achieve the same goals.

CBA and the index conundrum for super funds

After the hyperbolic rise in CBA shares, super funds are floating the idea of carving out the weightings of ASX bank securities and indexing them within their portfolios. This looks at why that might be a big error.

Strategy

10 policies to drive Australian productivity higher

Here's a comprehensive list of proposed reforms to fix Australia's stagnating economy, including introducing a flat income tax rate, reducing migration, and making childcare tax-deductible.

Interviews

Where to find big winners in Asia

As more money looks for a home outside the US, Asia may soon get some love. Fidelity's Anthony Srom outlines the best places in Asia to invest, including in Chinese consumer names, Indian financials, and Thailand.

Investment strategies

We have trouble understanding the time value of money

We overvalue the present and underestimate the future - it’s a cognitive glitch called hyperbolic discounting. It affects savings, spending, and loans, and it's more common - and costly - than we think. 

Sponsors

Alliances

© 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.