Aus Ethical confirms benefits of Christian Super merge

Australian Ethical’s November 2022 merger with Christian Super has paid serious dividends, with the business reporting a 45% increase in funds under management from 30 June, last year, giving it scope to expand its addressable market.

In an update filed with the Australian Securities Exchange (ASX) Australian Ethical also confirmed it had selected GROW Technology Services as its new administrator.

The company said that funds under management reached a record $9.02 billion at 31 May, representing an increase of 3% over the previous month and 45% since 30 June, last year,.

It said that during the second half of FY23, it expected revenue to be approximately 21% higher than the first half driven by higher average FUM with underlying profit after tax for the second half expected to be 30% higher than the first half in a range of $6.3 million to $6.8 million.

The company’s announcement said that following the successor fund transfer with Christian Super the higher levels of FUM presented Australian Ethical with the opportunity to both continue to invest in the business to capture the significant addressable market for Responsible Investing, and simultaneously seeing operating leverage emerge in the future earnings profile of the company.