Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Australian Ethical

  •   26 August 2021
  •      
  •   

Australian Ethical’s (ASX:AEF) investment in growth pays dividends, with record annual FUM growth, revenue, and profit

26 August 2021: Australia’s original responsible investment manager Australian Ethical today announced annual results including FY21 underlying profit after tax (UPAT) of $11.1 million and operating revenue of $58.7 million, up 19% and 18% respectively on FY20.

These strong results were driven by strategic investment to strengthen investment capability, distribution and brand awareness, as well as a seismic shift in consumer attitudes towards responsible investing and the ongoing relative outperformance of ESG and green funds.

These three crucial factors combined with strong performance across most funds in the investment portfolio to drive record net inflows of $1.03 billion and funds under management (FUM) to $6.07 billion, a 56% and 50% increase respectively on FY20.

Broken down further super FUM increased 43% to $3.9 billion and managed funds FUM increased 63% to $2.17 billion. Managed funds net flows increased 122% to $0.42 billion, as the strategic focus on climate-friendly funds and investment in marketing gained significant traction.

As a result, Australian Ethical’s customer base grew by 23%, with managed fund customers increasing by 31% and super members by 22%. Australian Ethical remains one of the fastest-growing super funds in the country by both number of members and FUM.

Strong investment performance also multiplied the positive impact of rapidly-growing FUM on the stellar annual results, including $2.9 million in performance fees from Australian Ethical’s Emerging Companies Fund.

These outstanding annual results allowed the Board to declare a fully franked final dividend of 4 cents per share for FY21, as well as a special performance fee dividend of 1 cent per share, bringing the total dividend for the year to 8 cents per share, an increase of 33% on the previous year.

John McMurdo, Australian Ethical CEO and MD, said: “It has been a pivotal year for ethical investing with climate pledges and sustainable commitments being made around the world. As the pandemic continues to reshape economies and global markets, a near-universal desire for a more sustainable future is emerging. 

“The recent Intergovernmental Panel on Climate Change (IPCC) report is a historic moment for investors and corporations to step up and support urgent and large-scale initiatives to reduce emissions.

“We strongly believe that profit and purpose can go hand-in-hand. Embedding ethics into the investment process can allow for excellent investment performance that also creates a positive impact for people, planet and animals, and addresses growing issues like climate change.

“Australian Ethical’s success and impact proves that when purpose is a genuine part of your corporate identity and is embedded in your strategy and your governance, it’s possible for the average Australian to find great investment products to use their money as a force for good. 

“Our ethical investment approach is rapidly gaining popularity due to our climate-friendly portfolios that achieve strong performance, as our award-winning products achieve record net inflows.

“This presents a once-in-a-business-lifetime opportunity for Australian Ethical to grow into one of Australia’s largest and most successful investment managers. Expenses in the short-term reflect deliberate investment to realise ambitious growth in FUM and revenue to achieve just that.

“More broadly, our strategic focus remains on deepening our investment capability, expanding our product offering, growing our brand awareness, fully digitising and upgrading the customer experience and significantly expanding our customer base.

“This will help to cement our leadership in ethical and climate-friendly investment and, in turn, achieve much greater profit growth over the medium and long-term.”

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Australian house price speculators: What were you thinking?

Australian housing’s 50-year boom was driven by falling rates and rising borrowing power — not rent or yield. With those drivers exhausted, future returns must reconcile with economic fundamentals. Are we ready?

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?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

Latest Updates

Shares

Why the ASX may be more expensive than the US market

On every valuation metric, the US appears significantly more expensive than Australia. However, American companies are also much more profitable than ours, which means the ASX may be more overvalued than most think.

Economy

No one holds the government to account on spending

Government spending is out of control and there's little sign that Labor will curb it. We need enforceable rules on spending and an empowered budget office to ensure governments act responsibly with taxpayers money.

Retirement

Why a traditional retirement may be pushed back 25 years

The idea of stopping work during your sixties is a man-made concept from another age. In a world where many jobs are knowledge based and can be done from anywhere, it may no longer make much sense at all.

Shares

The quiet winners of AI competition

The tech giants are in a money-throwing contest to secure AI supremacy and may fall short of high investor expectations. The companies supplying this arms race could offer a more attractive way to play AI adoption.

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.

Infrastructure

Renewable energy investment: gloom or boom?

ESG investing has fallen out of favour with many investors, and Trump's anti-green policies haven't helped. Yet, renewables investment is still surging, which could prove a boon for infrastructure companies.

Investing

The enduring wisdom of John Bogle in five quotes

From buying the whole market to controlling emotions, John Bogle’s legendary advice reminds investors that patience, discipline, and low costs are the keys to investment success in any market environment.

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.