Australian Ethical Investments Lifts FUM Despite Challenging Market
Australian Ethical Investment is an Australian fund manager focused on sustainable, environmentally friendly and socially responsible investment opportunities.
Australian Ethical Investment Limited (ASX:AEF) announced today that Funds under Management (“FUM”) increased 1.9% during the first quarter of 2016 to $1,428million.
Net flows reached a surplus of $70.4million, which was reduces by market outflows of $43.7million to end up at the net change of $26.7million. The slight increase in FUM was realised in a quarter dominated by negative sentiment and volatile trading activity. The ASX200 declined approximately 4% during the first three months of the year.
Managing Director Phil Vernon commented on the results: “Australian Ethical recorded a slight increase in funds under management over the quarter, despite negative market movements due to the significant market volatility throughout the quarter.”
Phil Vernon emphasised on the lacklustre investing appetite during the quarter but noticed that their superannuation funds continue to grow at double-digit rates: “Net flows into our managed funds has also been impacted by what appeared to be cautious sentiment by investors given the market conditions. Net inflows to our superannuation fund continued to grow with a 13.1% increase when compared to the previous quarter.”
Who is Australian Ethical Investments?
Australian Ethical Investment is an Australian fund manager focused on sustainable, environmentally friendly and socially responsible investment opportunities. The company invests in areas such as clean energy, medical solutions, innovative technology, recycling, education or aged care. At the same time Australian Ethical avoids investment opportunities in the coal, oil, tobacco or gambling industry.
In February 2016, Australian Ethical Investments announced strong half year results for the period ending 31 December 2015. Revenue rose 11% to $10.9million, while net profit after tax (“NPAT”) jumped 172% to $1.5million.
AEF has gained ~37% over the past 12 months and is flat year-to-date. As at 11 April 2016, AEF had a market capitalisation of ~$68million.
Author: Simon Herrmann
Apr 11, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.