Australian Ethical Investments posted a 23% fall in net profit after tax to $1.97 million after the funds manager cut its fees to attract more investors.
Revenue increased 6% to $21.2 million and all other metrics show a fund in growth, including a 32% increase in funds under management to $1.167 billion, net inflows almost doubling (up 96%) to $179 and superannuation membership increasing 20% to 21,196 members.
The fund has been reducing its superannuation fees which contributed to increased net inflows. This chart shows the impact:
Managing director Phil Vernon says the year was one of of significant growth and success.
“The market for ethical investment continues to grow as investors and consumers come to the realisation that they can invest ethically while achieving strong and consistent returns,” he says.
“As investors become more frustrated with the lack of political action on climate change, they are looking for opportunities to use the power of their investments to drive positive change in the economy.”
Australian Ethical Investments screens out investments in companies involved in tobacco, uranium, coal mining, exploitation of people and old-growth forest logging.
A fully franked final dividend of $1.20 a share was declared, bringing the total dividend for the year to $2.