Australian Ethical (ASX:AEF) Reports Record Growth in Funds Under Management
Record Funds Under Management
Australian Ethical has announced a record high in Funds Under Management (FUM) of $13.26 billion. This marks an impressive 27% growth for the financial year to date. The company has attributed this growth to consistent net flows and solid investment performance during the quarter ending 31 December 2024.
Retail and Wholesale Net Flows
In the reported quarter, Australian Ethical recorded retail and wholesale net flows of $173 million. A significant portion of this was driven by superannuation services and the values-aligned channel. Despite some disruption due to the transition of administration services, superannuation flows remained robust at $101 million. Australian Ethical anticipates that these flows will stabilise in the second half of the fiscal year.
Investment Performance Insights
The company reported positive investment performance of $190 million for the quarter, demonstrating the effectiveness of their investment strategies. The wholesale Australian Shares Fund achieved a notable return of 17.9%, highlighting the strong capabilities of the investment team.
Executive Comments
Managing Director John McMurdo expressed his satisfaction with the company’s growth, stating, “I’m delighted that our continued commitment to our growth strategy has enabled us to achieve new milestones over the period.” He further added that the recent transitions completed with State Street and GROW will fortify the business platform and improve operational efficiencies.
Future Outlook
Further updates are expected during the half-year results announcement scheduled for 27 February 2025. Australian Ethical remains optimistic about the stability of their operations and the performance of their funds.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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