Australian Ethical Investment Ltd · ASX:AEF

Australian Ethical Investment — H1 2018 Earnings Presentation

16 slides from Australian Ethical Investment's earnings presentation, Feb 23, 2018

  1. Slide 1: Australian Ethical Half Year Results 31 December 2017

    For personal use only Australian Ethical Half Year Results 31 December 2017 1

  2. Slide 2: Half Year Highlights

    For personal use only FUM  Super member  Managed funds  growth flows • Group funds under management of $2.6 • Super members • Net managed funds increased to 37,699 flows up 19%^ Highlights billion up 41% up 23% • Significant • Net inflows of $341 million up 63% institutional flows of $139.6 milli

  3. Slide 3: Profit and loss summary

    For personal use only Revenue 13,328 17,400 31% Operating expenses (10,114) (14,173) 40% Non operating expenses (2,410) - - Income tax expense (235) (909) 287% Total expenses (12,759) (15,082) 18% Net profit after tax-statutory 569 2,318 307% Less Foundation results* (5) (161) Net profit after tax a

  4. Slide 4: Revenue v HY17

    Revenue ($'m) v HY17 For personal use only 1.3 2.8 17.4 13.3 Source: 1H17 Superannuation Managed Funds 1H18 3

  5. Slide 5: Operating Expenses v HY17

    Operating Expenses ($m) v HY17 For personal use only 0.1 0.7 0.5 2.8 14.2 10.1 1H17 Operating Employee Fund Related Marketing Community Grant 1H18 Operating Expenses Expenses 4

  6. Slide 6: Key financials

    Key financials For personal use only Funds under management ($m) 17.4 Revenue ($m) 2,602 13.3 Strong FUM & 1,841 9.9 10.9 revenue 9.7 1,401 1,039 growth 802 continues 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 As at 31 December (before distributions) Six months ending 31 December Profit after

  7. Slide 7: Key financials: share price, dividend, EPS, ROE

    Key financials For personal use only 140 Share Price ($) Interim dividend (cps) 165 120 86 Positive results for 62 80 80 shareholders 40 50 30 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 As at 31 December Six months ending 31 December Basic earnings per share(cps) Return on equity (%) 32% 198

  8. Slide 8: Managed FUM and flows

    For personal use only Advised Managed FUM ($m) Funds Superannuation 6% Managed Funds 901.5 Direct Managed Funds 582.5 22% 493.7 347.6 1,700.9 289.4 1,258.5 907.6 512.3 690.9 2013 2014 2015 2016 2017 As at 31 December (before distributions) Institutional Funds under Superannuation 1H2017 1H2018 Chang

  9. Slide 9: Super members and net flows growth

    For personal use only 37,699 Growth 30,535 Managed Funds Institutional 341.4 on 1H17 23,570 Superannuation 19,284 Net Flows 208.2 15,870 155.5 73.3 33.5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 As at 31 December of each year Six months ending 31 December 9

  10. Slide 10: FUM trends

    For personal use only FUM Dec 2013 $0.8 bn FUM Dec 2017 $2.6 bn Managed Funds 13% (Retail) 26% FUM 16% Managed funds (wholesale) trends 64% 10% 65% 6% Institutional Superannuation 6

  11. Slide 11: Australian Share Fund performance chart

    For personal use only Australian Share Fund -Net ASX Small Industrials S&P/ASX All Ordinaries As at 31 December 2017 Source: Morningstar 10

  12. Slide 12: Australian Shares Fund performance vs benchmark

    For personal use only Our Australian Shares Fund continues to outperform benchmark for the medium, long and very long term. Recommended minimum investment timeframe is 7 years. 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* 8.9 8

  13. Slide 13: Return/risk over years to December 2017

    For personal use only Return/risk over 10 years to December 2017 – Australian Shares Fund To be updated Annualised return Top quartile performance with below market risk Annualised standard deviation (risk) Source: Morningstar 12 As at 31 December 2017 Source: Morningstar

  14. Slide 14: Balanced Accumulation Option performance

    For personal use only Our default MySuper Option, the Balanced Accumulation Option, has exceeded its 5-year return objective and met or outperformed its benchmark over the time periods highlighted 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

  15. Slide 15: For personal use only

    For personal use only 15

  16. Slide 16: Important information

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

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