The Australian Ethical (ASX:AEF) share price just hit a new all-time high

What’s lit a fire under Australian Ethical?
The post The Australian Ethical (ASX:AEF) share price just hit a new all-time high appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) isn’t having a great time of it on the ASX boards this Thursday. At the time of writing, the ASX 200 is down 0.32% to 7,425 points. That’s in stark contrast to the Australian Ethical Investment Limited (ASX: AEF) share price.

On the surface, Australian Ethical’s gain of 0.3% to $13.32 a share (at the time of writing) doesn’t look that momentous. However, when you consider that this company hit $13.59 a share around lunchtime today, you might want to break out the champagne, especially if you happen to be an Australian Ethical shareholder. That’s because $13.59 is a new all-time high for Australian Ethical Investment.

Yes, a new all-time high. That certainly doesn’t happen every day. But this development is just the latest in a long line of good news investors in this company have enjoyed in recent times. At today’s racing, Australian Ethical is now up an incredible 172% year to date in 2021 so far. It’s also up almost 206% over just the past 12 months, as well as a mind-boggling 1,381% over the past 5 years.

So what’s gone so right for Australian Ethical in 2021 so far?

Australian Ethical share price surges on higher FUM inflows

Well, it seems to be quite simple. This company is growing at breakneck speed.

Back in July, Australian Ethical announced that it had enjoyed a 56% increase in funds under management (FUM) over the financial year ending 30 June 2021, bringing its total FUM to $6.07 billion.

Fast forward to this month, and it was only last week that Australian Ethical declared that its FUM now stood at $6.54 billion, as of 30 September. That’s a 7.75% increase in 3 months. The company also announced that its net inflows for the quarter were $160 million, a record high.

Since Australian Ethical is in the business of funds management, these figures arguably bode very well for its profitability. Fund managers work on a ‘clip the ticket’ model, where they take a slice of the total FUM pie every year. The faster its FUM grows, the ‘ticket’ that Australian Ethical gets to clip gets exponentially larger.

This is probably the main reason we are seeing such strong share price appreciation for this company.

At the current Australian Ethical Investment share price, this company has a market capitalisation of $1.5 billion, with a dividend yield of 0.52%.

The post The Australian Ethical (ASX:AEF) share price just hit a new all-time high appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australian Ethical Investment right now?

Before you consider Australian Ethical Investment, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australian Ethical Investment wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why has the Australian Ethical (ASX:AEF) share price rallied 17% in a week?

Australian Ethical (ASX:AEF) share price hits new high on record quarterly inflows

3 reasons why the Australian Ethical (ASX:AEF) share price could be a standout idea

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!