Australian Ethical hits record funds under management
Australian Ethical reported a new funds under management milestone of $14.5 billion after strong end-of-financial-year superannuation inflows.
The ethical investment manager saw funds grow from $13.57 billion at the end of March to $14.5 billion by June 30. Organic net inflows contributed $170 million in the final quarter, while market movements added $650 million.
Superannuation drives growth amid market challenges
Superannuation remained the main driver, with net inflows of $196 million lifting total super funds to $10.4 billion. The increase came from stronger contributions, rollover activity, and higher compulsory superannuation guarantee payments.
Retail and wholesale investment products experienced net outflows of $26 million during the same period. Managing director John McMurdo stated that the focus on superannuation and new offerings helped counter broader market difficulties.
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“Fourth quarter flows into superannuation and product innovation in our asset management business have allowed us to finish strongly in FY26,” he said. “The new FUM milestone is a pleasing result given the substantial economic and market challenges of FY26.
“The decision to build out our investment team and diversify asset classes over recent years was rewarded in what has been a challenging year for many fund managers, with Australian Ethical achieving positive returns across most of our portfolios, and net-inflows into core product categories.
“During the period, we have continued to see strong demand for our approach to investing, with new super member joins increasing in the second half of the year. We have also seen demand growing for our newly launched Growth Opportunities Fund.
“The diversification and resilience of our business model continues to allow us to grow, even in periods of market stress.”
The newly launched Growth Opportunities Fund received a $125 million investment from the Clean Energy Finance Corporation. That funding helped support institutional inflows and provided resilience against higher-than-usual redemptions from advised and direct investment channels during the period of market volatility.
Uneven results across investment segments
Institutional net inflows reached $173 million for the financial year, though an outflow tied to the Australian Unity Bank mandate partly offset those gains. Retail and wholesale net flows totaled $491 million, but the final quarter saw outflows in these areas.
The company said FY26 investment performance reflected heightened geopolitical uncertainty and difficult market conditions. Rising oil and gas prices driven by the conflict in the Middle East added to inflationary pressures.
New member acquisition also supported growth. The completed GROW platform migration, reactivated employment platform acquisition channel, and stronger digital marketing performance all lifted new member joins during the second half of the financial year.
Despite obstacles, Australian Ethical ended the year with funds up from $13.94 billion the previous year.
