AE’s 34% FUM growth validates ethical investing

Australian Ethical ended FY25 with 34% full-year growth in funds under management (FUM) prompting it to suggest that ethical investing can still deliver great outcomes.

In a fourth quarter update to the Australian Securities Exchange (ASX) Australian Ethical chief executive, John McMurdo said the quarterly result and the firm’s full year FUM growth reflected ongoing disciplined strategy execution I the face of challenging economic and geo-political cycles.

“The continued demand for our way of investing has delivered record super net flows of $209m in the quarter. Our investment performance has also contributed to strong FUM growth, and I’m thrilled that we have been able to reward investors with strong returns during this period,” McMurdo said “Together, this further demonstrates that ethical investing can deliver great outcomes while making money a force for good.”

Looking at its fourth quarter performance, the fund manager said that retail and wholesale net flows of $195 million were primarily attributable to superannuation which had been boosted by record year-end contributions and the resumption of superannuation marketing campaigns following the success administration transition from Mercer to GROW Inc.

It said that, as well, new members consolidating their super balances had increased after enhancements to the join process.

The update noted that Australian Ethical had recorded positive Q4 institutional net flows of $61 million from its fixed income funds and mandates following the acquisition of Altius Asset Management in the second half of last year.

It said strong investment performance contributed $591 million in Q4 FUM.