Australian ethical investing continues rise
Wednesday, 20 January 2016 11:35am

Interest in ethical investment is shaping to continue its rise during 2016 following the latest inflow figures from ASX-listed wealth manager Australian Ethical.

Australian Ethical increased its funds under management (FUM) by 13% to more than $1.4 billion by the end of the 2015 December quarter.

The biggest inflow came from Australian Ethical's superannuation arm, with net flows contributing more than $55 million. Managed funds net flows were recorded at $31.1 million for the quarter.

Australian Ethical Investment managing director Phil Vernon said interest in ethical investment continues to rise.

"And our consistent investment track record over multiple time periods continues to show that it is possible to achieve competitive returns whilst investing with your values," Vernon said.

"Our strategy to progressively reduce our fees in our superannuation fund has also contributed to the increasing new business volumes.

"Additionally, we invested in making our sign-up and rollover processes among the best in the industry. Members can join the fund in as little as three minutes, completely online, which removes another barrier to switching."

Australian Ethical has previously said it aims to be at the 75th percentile of its MySuper peer group by 2020, with funds under management increasing by 65% in the last three years to pass $1 billion. The super fund has grown to more than 20,000 members.

According to the annual RIAA Responsible Investment Benchmark Report, Australian Ethical was among the five largest super fund portfolios to be classified as "core responsible investment". This included Local Government Super ($4.8bn), UniSuper ($1.8bn), VicSuper ($793m), Australian Ethical ($681m) and Christian Super ($642m).

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