Record profit for Australian Ethical Investment

Superannuation and investment fund manager Australian Ethical has announced impressive results for the financial year ending 30 June 2014, including a record profit and record funds under management. The company was this year certified as a B Corporation, indicating its dedication to using the power of business to solve social and environmental issues.

In comparison to the 12 months ending 30 June 2013, Australian Ethical recorded:

• Record net profit after tax (NPAT) of $2.543 million (up 139%);
• Record underlying profit after tax (UPAT) of $3.111 million (up 86%);
• Record community grant of $0.302 million ($1.75 million in total since 2000);
• Record revenues of $19.9 million (up 21%);
• Full year ordinary dividend of $2.00 per share, fully franked;
• Operating expenses were $13.5 million (up 4%).

Operating highlights included:

• A record $887m in group funds under management (up 25%);
• Record net inflows of $92m (prior period experienced net inflow of $1m);
• Record client numbers with superannuation membership growing by 19%;
• Record monthly client intake averaging 400 per month (up from 160 per month);
• MySuper product authorisation by APRA;
• The launch of Australia’s first retail ethical fixed-interest fund.

“The past year has been an extremely successful one, with every aspect of the business performing above expectations,” said Managing Director Phil Vernon. “Our new client intake and net fund inflows are well above our forecasts and industry averages, our investment performance has beaten mainstream benchmarks, our people are highly engaged and we continue to improve the efficiency of our operations.

“As a result, we are at almost $1 billion in funds under management, our profit is strong and our share price has doubled in the past 12 months.”

The board has determined to pay a fully franked final dividend of 120 cents per share, taking 2013-14 fully franked dividend to 200 cents per share - up 135% on last year.