Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — FY2026 Earnings Presentation
50 slides from Australian Ethical Investment's earnings presentation, Aug 25, 2026
Slide 1: FY26 Full Year Results
Australian Ethical Investment Ltd FY26 Full Year Results John McMurdo (Managing Director & CEO) Mark Simons (CFO) 25 August 2026
Slide 2: Acknowledgement of Country
Australian Ethical acknowledges the Traditional Owners of the Country on which we meet, the Gadigal people of the Eora Nation. We pay our respects to Elders past and present and thank them for protecting Country – since time immemorial.
Slide 3: Contents
Contents 01 Overview & 02 Financial Results 03 Business update 04 Appendices FY26 highlights 3
Slide 4: Overview & FY26 highlights
01. Overview & FY26 highlights 4
Slide 5: 40 years as a 'pure-play' ethical investment management company
40 years as a ‘pure-play’ ethical investment management company… Authentic, purpose- Successful, fast Both purpose driven, ethical growing ASX listed driven and investment leader commercially company, delivering making money a force successful long term returns to for good and having a shareholders
Slide 6: …growing with a clear, disciplined strategy
…growing with a clear, disciplined strategy Our Purpose Our Vision Our Values + + Investing for a Better World Make money a force for good Action, authenticity, empathy, curiosity, connection Growing superannuation scale Extend our ethical investment with ethical investment leadership capability to
Slide 7: … and effective execution year on year…
… and effective execution year on year… Building on the success of FY25, FY26 saw further execution of strategic initiatives Growing superannuation Extend our ethical Enabled by a modern Enabled by a purpose scale with ethical investment capability operating platform built driven and high investment
Slide 8: … delivering a record result in FY26
… delivering a record result in FY26 Disciplined execution delivered record FUM, earnings growth and continued operating leverage $14.5bn $27.3m $25.7m $129.5m FUM at 30 June 26 FY26 UPAT* FY26 NPAT** Revenue up 4% YOY up 15% up 29% up 9% $90.4m 69.8% 10c 18c Operating expenses*** Cost to income (CT
Slide 9: Strong offering across our diversified business…
Strong offering across our diversified business… Business platform investments are translating into improved customer experience and strengthened growth engines Super members Middle Market investors Money Magazine Awards Best ESG Superannuation & ESG Pension Product 2026 New customer wins 2H member
Slide 10: With our unique expertise compelling for investors…
With our unique expertise compelling for investors… For 40 years we’ve invested through changing market cycles, staying true to the principles of our Ethical Charter to deliver values-aligned long-term returns for a growing number of investors. During the year: Our expanded ethics team piloted AI au
Slide 11: …and accentuated through the work of the Australian Ethical Foundation…
…and accentuated through the valued work of the Australian Ethical Foundation… Place-based Unlocking capital Climate justice nature solutions for nature and resilience Empowering First Nations Supporting research, policy Supporting advocacy, campaigns people and other communities advocacy, and the d
Slide 12: …while the business continues to receive awards and recognition
…while the Superannuation business Money Magazine Awards Best of the Best Roy Morgan Customer Satisfaction Annual Awards Finder Customer Satisfaction Awards 2026 Rainmaker AAA Quality Rating RIAA Responsible Super Fund Leader# SuperRatings GOLD For MySuper 2026# continues Best ESG Superannuation & 2
Slide 13: We are well placed for further growth with our high quality business
We are well placed for further growth 2026 with our high quality business Over the past 6 years, we have grown FUM over 3.5X, enhanced 2025 FUM and diversified the business platform, delivered strong returns $14.50bn 2024 for shareholders, received multiple awards and enhanced our Brand awareness up
Slide 14: Financial results
AANA) i ‘ Ny i ( 02. Financial results
Slide 15: FY26 Financial Results
FY26 Financial Results Strong FY26 profit growth and operating leverage improvement Key financials ($'000) FY26 FY25 Movement % Key themes Operating Revenue 129,545 118,755 9% Other Revenue 1 629 Total Revenue 129,546 119,384 9% FY26 operating revenue up 9% driven by average FUM Operating expenses (
Slide 16: Record FUM of $14.50bn
Record FUM of $14.50bn FUM ($bn) Change 16.00 Funds under management ($bn) FY26 FY25 (YoY %) 14.50 13.94 Opening FUM 13.94 10.44 14.00 1.81 1.69 Superannuation net flows 0.53 0.51 12.00 10.44 2.42 Investments* net flows (0.04) 0.06 2.61 10.00 9.20 Institutional net flows 0.17 0.01 2.19 2.00 Total or
Slide 17: Resilient net flows despite challenging markets
Resilient net flows despite challenging markets The core superannuation business continues to generate recurring net flows whilst the second growth engine is now emerging – supporting Key themes – FY26 resilience in net flows $664m of organic net flows, up 13% on FY25, comprising: • $491m retail and
Slide 18: FY26 average revenue margin stable
FY26 average revenue margin stable Revenue margin Key themes Average FY26 revenue margin of 0.91% down from 0.92% in FY25 Average Average revenue FUM ($bn) margin* The small FY26 average margin reduction primarily due to full year impact of lower margin fixed income Altius FUM and further superannua
Slide 19: Operating revenue up 9% to $129.5m
Operating revenue up 9% to $129.5m Operating revenue ($m) Key themes $m Revenue increased 9% driven by: 140.0 • Average FUM growth of 11%, underpinned by positive net flows and investment performance 1.4 0.3 130.0 • Marginally offset by lower average revenue margin due to changes in 9.0 product mix
Slide 20: Disciplined investment in growth and resilience, while improving CTI
Disciplined investment in growth and resilience, while improving CTI Key themes Operating expenses* increased 7%, reflecting continued investment in Operating expenses ($m) growth partly offset by efficiency initiatives. Operating leverage improved, with underlying CTI of 69.8% compared FY26 to 71.4
Slide 21: Continued focus on delivering operating leverage improvements
Continued focus on delivering operating leverage improvements Key themes Underlying CTI has improved by 9.2 percentage points Revenue and expense* jaws ($m) since FY22 Increasing scale, driven by FUM growth, transformation FY26 initiatives and disciplined cost management has supported CTI this outco
Slide 22: Strong capital position with no debt
Strong capital position with no debt With $22.7m surplus above regulatory capital Net Tangible Assets ($m)* Group capital position $m FY26 FY25 Key themes Cash & term deposits 50.8 38.8 Strong Balance Sheet with no debt Net cash from operating activities 32.6 19.9 Strong Cash position Cashflow conve
Slide 23: Strong growth across key shareholder metrics
Strong growth across key shareholder metrics Dividends (cps) UPAT attributable to shareholders NPAT attributable to shareholders Diluted earnings per share (cps) Diluted earnings per share (cps) 22.48 18.0 23.89 17.51 14.0 20.90 16.44 9.0 10.51 7.0 8.55 10.46 6.0 9.16 5.84 FY22 FY23 FY24 FY25 FY26 F
Slide 24: Business Update
03. Business Update 24
Slide 25: Growing with a clear, consistent and disciplined strategy…
Growing with a clear, consistent and disciplined strategy… Our Purpose Our Vision Our Values + + Investing for a Better World Make money a force for good Action, authenticity, empathy, curiosity, connection Growing superannuation scale Extend our ethical investment with ethical investment leadership
Slide 26: …and the further build planned, will position our business for the next growth phase
…and the further build planned, will position our business for the next growth phase Enabled by a modern operating Growing superannuation scale Extend our ethical investment platform built for scale, efficiency with ethical investment leadership capability to win beyond super & resilience Further en
Slide 27: Outlook
Outlook Well positioned for continued growth, supported by multiple growth engines, a stronger operating platform and a highly differentiated offering FY27 Medium term We are well-positioned Structural growth drivers remain • positive net flows expected to continue, supported • continued support fro
Slide 28: aitaien | A
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Slide 29: Appendices
04. Appendices
Slide 30: Appendix 1: UPAT and Cost to Income (CTI) reconciliation
Appendix 1: UPAT and Cost to Income (CTI) reconciliation 30
Slide 31: Appendix 1: UPAT and CTI reconciliation
Appendix 1 : UPAT and CTI reconciliation Key financials ($'000) FY26 FY25 Movement % Net profit after tax (NPAT) 25,813 20,196 28% Key themes Less: Net (profit)/loss after tax attributable to The Foundation (75) (258) Net profit after tax attributable to shareholders 25,738 19,938 29% Adjustments: F
Slide 32: Appendix 2: Investment Performance
Appendix 2: Investment Performance 32
Slide 33: Investment leadership
Investment leadership Long-term returns | Australian Shares Fund Value of $1,000 invested since inception Risk/return over ten years to June 2026 16.00 16.00 20,000 18,000 14.00 14.00 16,000 12.00 12.00 14,000 10.00 10.00 Return (%pa) 12,000 8.00 8.00 10,000 6.00 6.00 8,000 6,000 4.00 4.00 4,000 2.0
Slide 34: Active Equities - Australian Shares Fund
Active Equities - Australian Shares Fund Since 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) 10Y (%pa) 20Y (%pa) inception (%pa) Retail* (9.7%) 3.8% 0.7% 6.0% 7.0% 8.1% 9.0% Benchmark^^ 6.9% 10.6% 7.6% 8.0% 8.8% 5.9% 7.5% Relative Performance (16.5%) (6.8%) (6.9%) (2.0%) (1.8%) 2.2% 1.5% Wholesale^ (9.1%) 4.4% 1.3%
Slide 35: Quant strategies – International Shares Fund
Quant strategies – International Shares Fund The Fund aims to track MSCI World ex Australia Index (AUD) Net, before taking into account fees and expenses over a 3 year period. Since 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) 10Y (%pa) inception (%pa) Performance 15.4% 17.7% 12.7% 13.6% 13.7% 12.7% Benchmark^ 14.
Slide 36: Fixed Income - Credit Income Fund
Fixed Income - Credit Income Fund Since 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) inception (%pa)* Retail* 5.0% 5.4% 3.8% n/a 3.8% Benchmark^ 3.9% 4.2% 3.1% n/a 3.1% Relative Performance 1.1% 1.2% 0.7% n/a 0.7% Wholesale* 5.1% 5.5% 3.9% 3.2% 3.0% Benchmark^ 3.9% 4.2% 3.1% 2.3% 2.2% Relative Performance 1.2% 1.3
Slide 37: Private Markets - Growth Opportunities Fund
Private Markets - Growth Opportunities Fund The Growth Opportunities Fund launched in December 2024, designed to give our superannuation options and multi-asset funds access to private markets and diversification beyond listed equities. It has delivered a strong contribution to returns over the peri
Slide 38: Balanced Accumulation Option (MySuper)
Balanced Accumulation Option (MySuper) Since 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) 10Y (%pa) 20Y (%pa) inception* (%pa) Absolute Performance ~ 5.8% 7.7% 5.0% 6.4% 7.1% 5.4% 6.4% Benchmark# 7.0% 6.8% 7.6% 6.9% 6.4% 6.3% 6.3% Relative Performance (1.2%) 0.9% (2.6%) (0.5%) 0.8% (0.9%) 0.1% FY26 Commentary The
Slide 39: Appendix 3: Additional FUM & Financial details
Appendix 3: Additional FUM & Financial details 39
Slide 40: FUM overview
FUM overview Superannuation FUM of $10.40 billion represents 72% of the total AEI Group FUM Total FUM by product Total FUM by Asset Class & Strategy 13% 11% 2% 7% 2% 32% 4% 11% 12% 72% 10% 24% Investments - wholesale Investments - retail Domestic Equities (incl NZ) International Equity Values aligne
Slide 41: FUM by channel
FUM by channel Super FUM by channel Investment Products FUM by channel 6% 10% 31% 41% 28% 84% Direct Advised Institutional Direct Advised Employer All numbers as at 30 June 2026 41
Slide 42: FUM summary – Asset Class & Strategy
FUM summary – Asset Class & Strategy FUM at 31 Jun 26 FUM at 30 Jun 25 Externally managed Asset Class international ($bn) ($bn) equities, property, Domestic Equities (incl NZ) 4.55 4.98 alternative assets and global fixed International Equity 3.48 3.19 income – 26.9% of Short-Term Income 1.51 1.32 t
Slide 43: FUM summary – Superannuation
FUM summary – Superannuation FY26 Market Current FUM at 30 Jun 25 FY26 Net flows FUM at 30 Jun 26 Option movement / Other Investment Fee ($bn) ($bn) ($bn) ($bn) Superannuation Defensive 0.20% 0.24 (0.02) 0.06 0.28 Conservative 0.54% 0.40 0.00 0.05 0.45 Conservative Balanced 0.60% 0.34 (0.00) 0.06 0.
Slide 44: FUM summary – Investment Products
FUM summary – Investment Products Retail Wholesale Retail Wholesale Middle Market^ Institutional^ Total Funds Investment fee Investment fee ($m) ($m) ($m) ($m) ($m) % % Income Fund 0.20% 0.20% 13.1 - 1.3 - 14.4 Bond Fund 0.50% 0.30% - 23.2 0.2 65.1 88.5 Balanced Fund 1.42% 0.76% 78.7 299.8 185.7 - 5
Slide 45: Growth metrics
Growth metrics FY26 FY25 FY24 2H26 1H26 2H25 1H25 2H24 1H24 FUM – accumulated super ($bn) 9.62 8.86 7.69 9.62 9.24 8.86 8.34 7.69 7.11 Growth FUM – pension super ($bn) FUM – total super ($bn) 0.77 10.40 0.66 9.52 0.56 8.25 0.77 10.40 0.74 9.98 0.66 9.52 0.62 8.96 0.56 8.25 0.52 7.63 metrics FUM – in
Slide 46: Financial Metrics
Financial Metrics Financial metrics FY26 FY25 FY24 2H26 1H26 2H25 1H25 2H24 1H24 FUM based revenue (ex performance fee) ($m) 120.4 111.7 92.9 59.1 61.3 57.0 54.7 48.1 44.8 Performance fee ($m) - - 0.2 - - - - 0.2 - Member based revenue ($m)^ 5.7 5.4 6.0 2.7 3.0 2.7 2.7 3.0 3.0 Insurance Admin fee 1.
Slide 47: Fees
Fees Additional information Superannuation average Investments average revenue margin revenue margin~ Includes retail, wholesale^ and institutional Margins have reduced over time as we pass on benefits of scale to investors and members through fee reductions $bn $bn 12.0 1.25% 4.5 1.40% Average reve
Slide 48: Disclaimer
Disclaimer The information contained in this presentation is general information only, and does This document may contain material provided by third parties derived from sources not take into account your individual investment objectives, financial situation or needs. believed to be accurate at its
Slide 49: Disclaimer contd.
Disclaimer contd. Zenith Recommended rating applies to our Multi-Asset Funds and the Australian Ethical Altius Australian Ethical was again recognised as a Responsible Investment Leader by the Responsible Fixed Income Funds (excluding Australian Ethical Altius Bond Fund) Investment Association Austr
Slide 50: FY26 Full Year Results
Australian Ethical Investment Ltd FY26 Full Year Results John McMurdo (Managing Director & CEO) Mark Simons (CFO) 25 August 2026
Australian Ethical Investment — FY2026 Earnings Presentation on 6ix