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Highlights
- Australian Ethical shared an earnings guidance and business update on 15 December 2022.
- The firm has witnessed a growth in its funds under management for the November month.
- Australian Ethical expects its underlying profit after tax for the half year ending 31 December to be between AU$4.5 million and AU$5.0 million.
Australia’s ethical investment manager, Australian Ethical Investment Limited (ASX:AEF), on 15 December 2022, shared its earnings guidance and business update via an ASX announcement. As per the update, the firm has seen a growth in its funds under management after the merger with Christian Super. Also, the company shared that its underlying profit after tax (UPAT) before performance fees for the half year ending 31 December 2022, is likely to fall between AU$4.5 million – AU$5.0 million.
Meanwhile, the share price of the Australian Ethical Investment Limited was quoted at AU$4:410 per share, down 6.962% at 1:42 PM AEDT on the ASX.
Key takeaways from the guidance and business update:
- Australian Ethical stated that its underlying profit after tax (UPAT) for the half year ending 31 December 2022 is most likely to lie between AU$4.5 million – AU$5.0 million.
- The company attributed the positive guidance to the impact of the Christian Super successor fund transfer (SFT) for the period from 25 November 2022. As per AEF, the financial year ending 30 June 2023 will include a seven month contribution from the SFT.
- As per Australian Ethical, the financial benefits of the transaction are on track with the expectations released in August and November 2022.
- Australian Ethical informed that its funds under management (FUM) increased to AU$8.56 billion as at 30 November 2022, up 39% from 30 September 2022. The rise was driven by net flows of AU$0.12 billion, investment performance of AU$0.34 billion and the merger of FUM from Christian Super (AU$1.93 billion).
- As per AEF, the merger with Christian Super has increased the scale of Australian Ethical by adding more than 28,000 new members and AU$1.93 billion of FUM.
Recent share price performance of Australian Ethical Investment on the ASX:
In the last five days of trading on the ASX, the shares of Australian Ethical have shed 1.58%. In the last one month, the shares have lost 12.65% on the ASX. In the span on last six months on the ASX, the shares of AEF have come down by 1.81% and in the last one year, the shares have tumbled by 65.23% on the ASX. However, in the last five years of trade on the ASX, the AEF shares have spurted by 222.22% (as of 2:36 PM AEDT, 15 December 2022).
