ASX All Ords share Australian Ethical Investment Ltd (ASX: AEF) released its September quarter update today.
Despite reporting strong growth across core metrics, the Australian Ethical share price is currently down 0.5% at $4.13.
For some context, the All Ordinaries Index (ASX: XAO) is down 0.7% at this same time.
Here's what happened over the three months to 30 September.
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ASX All Ords share boosts FUM by $1.9 billion
Investors are bidding down the Australian Ethical share price today despite the company reporting a 24% quarter on quarter increase in Funds under Management (FUM) to $12.95 billion.
The ASX All Ords share completed its Altius transaction in September, which added $1.93 billion in FUM.
Positive organic net flows and strong investment performance also helped lift FUM, with organic growth of $96 million in net flows over the quarter.
The company noted that superannuation net flows were lower in the September quarter due to Australian Ethical Super's administration transition to GROW Inc., which commenced in mid-September. This transition led to a period of limited-service delivery that should be concluded in early November. These flows will then be reported in the December quarter.
As for those investment returns, the ASX All Ords share credited its strengthening investment expertise and active management for growing FUM by $487 million over the quarter.
What did management say?
Commenting on the results that have yet to boost the ASX All Ords share today, Australian Ethical managing director John McMurdo said, "We continue to see organic and inorganic growth across out business."
On the Altius acquisition, he said, "The acquisition of the Altius Asset Management business not only adds to FUM, it strengthens our position as one of Australia's leading ethical fund managers and aligns with our strategy to further build our investment team capability."
McMurdo added that Australian Ethical's transformation initiatives are progressing well.
According to McMurdo:
The transition of our custody administration to State Street is on track to be completed by 1 November 2024, and the transition to the GROW Inc superannuation administration platform from Mercer is set to complete in November, with the second tranche of members transitioning from Link to GROW Inc by the end of the financial year.
Together these changes will deliver a strengthened business platform, as well as improved efficiencies and unit-cost savings, as we head into our next phase of growth supported by the increasing demand for our style of investing.
Australian Ethical share price snapshot
The ASX All Ords share has had a tough year, down 25% in 2024 and 2% over the past 12 months.
