Australian Ethical Investment Limited (ASX:AEF) Reports Strong FY25 Financial Results
Financial Performance
Australian Ethical Investment Limited (ASX: AEF) reported record Funds Under Management (FUM) of $13.94 billion, an increase of 34% compared to FY24. Revenue grew by 19% to $119.4 million, while Underlying Profit After Tax (UPAT) rose by 29% to $23.8 million. Net Profit After Tax (NPAT) attributable to shareholders reached $19.9 million, up 68% from the previous year.
Operating Highlights
Growth in FUM was driven by positive net flows, the acquisition of Altius Asset Management, and strong investment performance. The company achieved an improved underlying cost to income ratio of 71.4%, down from 73.7% in FY24. Additionally, Australian Ethical allocated a record $2.8 million to the Australian Ethical Foundation.
Board Updates
Kate Greenhill announced her retirement from the Boards of Australian Ethical Investment Limited, Australian Ethical Superannuation Pty Ltd, and the Australian Ethical Foundation Limited, effective 31 October 2025. Fiona Reynolds has been appointed as the new Chair of Australian Ethical Superannuation Pty Ltd, effective 25 August 2025.
Outlook
For FY26, Australian Ethical anticipates further profit growth and reinvestment to support the next phase of expansion. The company expects continued organic FUM growth and explores new revenue opportunities in private markets and international equities.
Executive Comments
Managing Director John McMurdo stated, “I’m particularly pleased that the investment performance over the period has delivered positively for our members in the Multi Asset superannuation options and for investors across a range of our funds.” He added, “We are confident that we can continue to grow both organically and periodically inorganically and also deliver further operating leverage improvements over time.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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