Australian Ethical's Acquisition of Altius Asset Management

Australian Ethical Investment Limited (ASX: $AEF) has announced the signing of a binding agreement to acquire Altius Asset Management, a sustainable fixed income asset management business, from Australian Unity. The acquisition will increase Australian Ethical's funds under management (FUM) by approximately A$2 billion, from $10.3 billion to circa $12.3 billion, marking a 19% growth.

Executive Commentary on the Acquisition

Australian Ethical's Chief Executive Officer, John McMurdo, expressed, 'The acquisition of leading fixed-income fund manager Altius is another important milestone for Australian Ethical as we scale and broaden our investment capability consistent with our strategy and Ethical Charter. Transactions such as this add to our momentum as a purpose-driven business and our ability to deliver sound investment returns while influencing progress towards a better future for people, animals, and planet.' CIO Ludovic Theau added, 'This acquisition also signifies our ongoing commitment to work with like-minded organisations such as Australian Unity.'

Summary of Australian Ethical's Acquisition

Australian Ethical's acquisition of Altius Asset Management from Australian Unity is in line with its strategy to serve the growing potential addressable market favoring responsible investing. The acquisition will result in an increase in funds under management by approximately A$2 billion, expanding the sustainable fixed income team and portfolio. The transaction is expected to be EPS accretive from financial close and generate circa $1 million of EBITDA in FY25. The company aims to offer super fund members and investors increased access to ethical investment capability, aligning with its Ethical Charter. The acquisition demonstrates Australian Ethical's commitment to delivering sound investment returns while influencing progress towards a better future for people, animals, and the planet.