Australian Ethical Investment Ltd · ASX:AEF

Australian Ethical Investment — FY2017 Earnings Presentation

17 slides from Australian Ethical Investment's earnings presentation, Aug 31, 2017

  1. Slide 1: Australian Ethical Investment 2017 Full Year Results

    For personal use only Australian Ethical Investment 2017 Full Year Results 31 August 2017

  2. Slide 2: 2017 Highlights

    Growth  Investment  Revenue  Performance • Fastest growing • Strong growth For personal use only superannuation • Australian Shares fund offsets continued fund in 2016 consistently outperforming fee reductions Growth • Superannuation benchmark over 20+ years • Revenues up 23% clients up 34% • MyS

  3. Slide 3: Key financials

    Key financials For personal use only Key financials^ ($'000) FY2016 FY2017 Change (YoY) Revenue 23,040 28,305 23% Operating expenses (17,054) (22,310) 31% Non operating expenses (1,074) (1,937) 80% Income tax expense (1,726) (1,134) (34%) Total expenses (19,854) (25,381) 28% Net profit after tax-sta

  4. Slide 4: FUM by channel and product

    Growth FUM by channel and product For personal use only FUM ($m) Managed Funds (Direct), 23.0% Management Funds Superannuation 1,491.3 1,041.0 787.7 Managed Funds 586.9 458.6 (Advised), 7.0% 515.7 654.1 253.5 300.3 379.0 2013 2014 2015 2016 2017 Year ending 30 June Institutional, 0.4% Funds under Ch

  5. Slide 5: Strong underlying profit and revenue

    Funds under management ($m) Revenue ($m) 28.3 2,145.4 For personal use only 23.0 21.2 19.9 1,556.7 16.4 1,166.7 887.2 712.1 Strong underlying 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 profit and * Before Distributions revenue Profit after tax* ($m) Underlying profit after tax* ($m) 3.0 4.2 2

  6. Slide 6: Strong share price growth, returns down

    Share price ($) 94.6 Dividends (cps) 300 For personal use only 81.1 260 58.8 200 200 35.5 Strong 19.5 85 share price growth, 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 returns Basic Earnings Per Share (cps) Return on equity (%) down 282 30.3% due to unit 249 270 25.1% 22.2% pricing 190 15.2%

  7. Slide 7: Responsible investing in Australia continues to grow

    Responsible investing in Australia continues to grow For personal use only Total responsible investment $622 billion $33.6 billion Negative or positive screening $622 billion Total responsible $27.2 billion investment Sustainability themed investing $4.1 billion $581.6 billion $64.9 billion Impact i

  8. Slide 8: Core responsible investments in $billion

    For personal use only $64.9 Core responsible investments in $billion $51.5 Core RI as proportion $31.6 of total $25.6 assets $15.2 $16.5 2011 2012 2013 2014 2015 2016 Source: Responsible Investment Association Australasia 2017 Benchmark report

  9. Slide 9: Australian Ethical the fastest growing super fund

    Australian Ethical the fastest growing super fund by AUM growth and member growth (funds >$1bn AUM) For personal use only 2016 Growth By AUM By members Australian Ethical Super Australian Ethical Super Netwealth Investments SMSF Care Super Macquarie Prime Super Netwealth Investments Sunsuper Guild S

  10. Slide 10: Number of super members

    For personal use only Number of super members Super 35,352 members 26,342 +34% 21,196 17,663 14,868 2013 2014 2015 2016 2017

  11. Slide 11: Annual Flows

    For personal use only Annual Flows 700 Net flows 600 up 42% 500 400 300 200 $m 100 0 (100) (200) 2013 2014 2015 2016 2017 Managed Funds Superannuation Net Flows

  12. Slide 12: Flagship Australian Shares Fund outperforming

    For personal use only 0 10000 1000 2000 3000 4000 6000 7000 8000 9000 5000 9/1/94 3/1/95 9/1/95 3/1/96 9/1/96 3/1/97 9/1/97 3/1/98 10% p.a. | $8,818 9/1/98 3/1/99 Australian Share Fund -Net 9/1/99 3/1/00 9/1/00 3/1/01 9/1/01 3/1/02 9/1/02 3/1/03 7% p.a. | $4,632 9/1/03 ASX Small Industrials Value of

  13. Slide 13: Above benchmark investment performance

    Above benchmark investment performance For personal use only Australian Shares Fund continues to outperform benchmark over short, medium, long and very long term 1Y 2Y 3Y 5Y 7Y 10Y 15Y 20Y Since Incept’n (%) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) Retail* 11.5 12.1 13.7 16.0

  14. Slide 14: Return/risk over ten years to 2017

    For personal use only Return/risk over ten years to 2017 Ethical Annualised return investing doesn’t mean more risk Annualised standard deviation (risk) Australian Ethical Australian Shares Fund S&P/ASX 200 INDUSTRIAL – Total Return S&P/ASX SMALL INDUSTRIALS – Total Return S&P/ ASX 200 – Total Retur

  15. Slide 15: Above benchmark investment performance

    Above benchmark investment performance For personal use only Our default MySuper Option, the Balanced Accumulation Option, has outperformed its benchmark over all time periods shown below. 1Y 2Y 3Y 5Y 7Y 10Y 15Y Since Incept’n* (%) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) (%p.a.) Balanced Acc

  16. Slide 16: Thank you

    For personal use only Thank you

  17. Slide 17: Disclaimer

    Disclaimer For personal use only Australian Ethical Investment Ltd (ABN 47 003 188 930; Australian Financial Services Certain statements in this presentation relate to the future. Such statements involve Licence No. 229949) is the Responsible Entity and Investment Manager of the known and unknown ri

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