Australian Ethical reports solid profit growth
Thursday, 25 February 2016 12:32pm

Australian Ethical Investments has seen its net profit after tax rise 172% to $1.5 million for the half year to 31 December.

Half year revenue increased 11% to $10.9 million, up from $9.9 million, while net inflows doubled over the previous corresponding period, increasing to $155 million from $77 million.

Funds under management (FUM) for the half year increased 35% to $1.4 billion, up from $1.0 billion the year before. The increase was driven by a combination of new inflows - up 102% - and asset management performance - which was top quartile for key funds. The super fund's membership numbers also rose 11% to 23,570.

The solid result comes despite the company reducing its superannuation asset based administration fees by 0.30% to 0.63% on 31 July. Australian Ethical said the impact of fee drop was offset by increases in net flows and growth of funds under management throughout the period.

"We have had an exceptional half year result. Our net inflows have doubled, our investment performance remains strong and we maintain a disciplined approach to cost management," Australian Ethical managing director Phil Vernon said.

"Our strong new business growth is driven by increasing interest in ethical investing, as Australians look for ways to build their wealth in a positive way. Our solid investment track record, over multiple time periods, proves that people can make their money do good for both themselves and the planet.

"Australian Ethical is a success story for shareholders, investors and the 'Purpose Economy'," he added.

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