• Funds Under Management (FUM) down 1% to $13.10 billion
• Positive retail and wholesale net flows of $0.11 billion
• Institutional net outflows of $0.06 billion

Australian Ethical Investment Ltd reported that its Funds Under Management (FUM) fell by 1% to $13.10 billion in the third quarter of FY25, despite the company maintaining positive net flows. The positive result was underpinned by the superannuation business, where continued superannuation guarantee contributions provided resilience during challenging market conditions. Following the resumption of marketing campaigns post the super administration transition to GROW, Australian Ethical saw super member numbers growing during the quarter. Further, super outflows have moderated post completion of this transition of approximately 100,000 members from the Mercer platform to GROW Inc in the second quarter. While this transition is now complete and operational, improvements to the digital experience to lift rollovers from new members are a key focus area during the fourth quarter. Australian Ethical continues to see traction in their channel for values-aligned organisations with another $30 million inflow during the quarter. This largely offset redemptions in managed funds and investment products resulting from the market volatility. Net flows into the non-super investment products were $1 million for the quarter. During the quarter, net institutional outflows of $0.06 billion were reported, which related to fixed income funds and mandates. This was driven by an institutional client's working capital requirements and mortgage capital management. These funds are low margin and the impact on revenue is slight. Significant market volatility during the quarter saw the ASX300 lose around 4%, but Australian Ethical's diversified asset base which encompasses international equities, private markets and fixed income as well as Australian equities resulted in negative investment performance of just 1.6% for the quarter or $0.22 billion.