Fund manager Australian Ethical says conscientious investing has "come of age" after a big lift in superannuation membership helped drive a 53 per cent rise in its annual profit.
The ASX-listed company, which specialises in environmental and socially responsible investments, had 26,342 super members by the end of the 2015/16 financial year, and its funds under management rose by 33 per cent in the year to $1.56 billion.
Net profit in the year to June 30 hit $3 million as increased cash inflows offset the impact on margins of its efforts to reduce fees to make its superannuation fund more attractive.
"This has been a year of unprecedented growth for Australian Ethical, signalling a coming of age for ethical investing," managing director Phil Vernon said.
"We can see first hand that increased shareholder and investor demand for responsible investment is shifting capital out of the old fossil-fuel based economy in to a new economy based around renewable energy, improved energy efficiency and sustainable products.
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"As investors become increasingly concerned about the effects of climate change, they become more frustrated with the lack of political action and look for opportunities to use the power of their investments to drive positive change," Mr Vernon said.
"We believe the growth trajectory of ethical investment is set to continue."
AUSTRALIAN ETHICAL ENJOYS STRONG GROWTH
* Net profit up 53pct to $3m
* Revenue up 98pct to $23m
* Final dividend up 60 cents to $1.80, fully franked
