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:


Most viewed in recent weeks

Stop treating the family home as a retirement sacred cow

The way home ownership relates to retirement income is rated a 'D', as in Distortion, Decumulation and Denial. For many, their home is their largest asset but it's least likely to be used for retirement income.

Two strong themes and companies that will benefit

There are reasons to believe inflation will stay under control, and although we may see a slowing in the global economy, two companies should benefit from the themes of 'Stable Compounders' and 'Structural Winners'.

Welcome to Firstlinks Edition 433 with weekend update

There’s this story about a group of US Air Force generals in World War II who try to figure out ways to protect fighter bombers (and their crew) by examining the location of bullet holes on returning planes. Mapping the location of these holes, the generals quickly come to the conclusion that the areas with the most holes should be prioritised for additional armour.

  • 11 November 2021

Reducing the $5,300 upfront cost of financial advice

Many financial advisers have left the industry because it costs more to produce advice than is charged as an up-front fee. Advisers are valued by those who use them while the unadvised don’t see the need to pay.

Welcome to Firstlinks Edition 431 with weekend update

House prices have risen at the fastest pace for 33 years, but what actually happened in 1988, and why is 2021 different? Here's a clue: the stockmarket crashed 50% between September and November 1987. Looking ahead, where did house prices head in the following years, 1989 to 1991?

  • 28 October 2021

Why has Australia slipped down the global super ranks?

Australia appears to be slipping from the pantheon of global superstar pension systems, with a recent report placing us sixth. A review of an earlier report, which had Australia in bronze position, points to some reasons why, and what might need to happen to regain our former glory.

Latest Updates

Investment strategies

Are they the four most-costly words in investing?

A surprisingly high percentage of respondents believe 'This Time is Different'. They may be in for a tough time if history repeats as we have seen plenty of asset bubbles before. Do we have new rules for investing?

Investment strategies

Firstlinks survey: the first 100 tips for young investors

From the hundreds of survey responses, we have compiled a sample of 100 and will publish more next week. There are consistent themes in here from decades of mistakes and successes.


What should the next generation's Australia look like?

An unwanted fiscal drain will fall on generations of Australians who have seen their incomes and wealth stagnate, having missed the property boom and entered the workforce during a period of flatlining real wages.


Bank results scorecard: who deserves the gold stars?

The forecasts were wrong. In COVID, banks were expected to face falling house prices, high unemployment and a lending downturn. In the recovery, which banks are awarded gold stars based on the better performance?

Exchange traded products

In the beginning, there were LICs. Where are they now?

While the competing structure, ETFs, has increased in size far quicker in recent years, LICs remain an important part of the listed trust sector. There are differences between Traditional and Trading LICs.


Should you bank on the Westpac buy-back?

Westpac has sent out details of its buy-back and readers have asked for an explanation. It is not beneficial for all investors and whether this one works for some depends on where the bank sets the final price.

Investment strategies

Understanding the benefits of rebalancing

Whether they know it or not, most investors use of version of a Strategic Asset Allocation (SAA) to create an efficient portfolio mix of different asset classes, but the benefits of rebalancing are often overlooked.


Six stocks positioned well for a solid but volatile recovery

The rotation to economic recovery favouring value stocks continues but risks loom on the horizon. What lessons can be drawn from reporting season and what are the trends as inflation appears in parts of business?



© 2021 Morningstar, Inc. All rights reserved.

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. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). 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.

Website Development by Master Publisher.