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- Australian Ethical’s FUM increased by 6% to AU$6.94 billion for the quarter ended 31 December 2021.
- According to the Company, the FUM growth was driven by continuous net solid flows and investment performance.
- Backed by this announcement, the Company’s shares were spotted trading strong at AU$11.190 per share on ASX during the intraday trading session.
ASX-listed Australian Company, which operates funds management business Australian Ethical Investment Limited (ASX:AEF), shared on Monday that its Fund under management (FUM) increased 6% to AU$6.94 billion for the quarter ended 31 December 2021. This was an increase from AU$6.54 billion as of 30 September 2021. According to the Company, the FUM growth was driven by continuous net solid flows and investment performance.
If one looks at the breakdown provided by the Company, the managed funds segment witnessed the FUM growth from AU$1.96 billion to AU$2.10 billion over the quarter due to net flows. Institutional FUM did not see any change and was virtually flat at AU$0.38 billion for the three months to 31 December 2021. Meanwhile, superannuation FUM grew from AU$4.21 billion in September 2021 to AU$4.46 billion on 31 December 2021 – where AU$190 million was due to net flows, while the other AU$60 million was generated from market fluctuations (and ‘other’).
Overall, the Company recorded net flows of AU$0.31 billion during the quarter.
With the end of the second quarter, Australian Ethical was able to say how it has done in the initial six months of FY22.
The Company’s total FUM grew from AU$6.07 billion to AU$6.94 billion for the six months to 31 December 2021. This included net flows of AU$600 million.
At the beginning of December, AEF said it was anticipating its HY22 underlying profit after tax from AU$5 million to AU$5.5 million. This will indicate a growth of 8% if the Company achieves growth which falls in the middle of that range.
AEF was spotted trading 3.899% higher at AU$11.190 per share on ASX at 1:45 PM AEDT.
The fund manager has said that it will continue investing in its high growth strategy in view of the positive momentum it is witnessing and the scale of the opportunity ahead. The Company focuses on building its investment capability, enhancing its product development and technology platforms.
Besides, for the second half, the Company is also planning further investment in brand and growing its reach in intermediated channels.