Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — Shareholder Meeting (October 2020)
30 slides from Australian Ethical Investment's shareholder meeting presentation, Oct 29, 2020
Slide 1: Australian Ethical Investment Limited – 2020 AGM Speeches & presentation slides
Thursday, 29 October2020 Market Announcements Office ASX Limited For personal use only Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Australian Ethical Investment Limited – 2020 AGM Speeches & presentation slides The Chair and Managing Director’s speeches are attached. The presentastion slides re
Slide 2: Stephen Gibbs, Chairman – 2020 AGM Address
Stephen Gibbs, Chairman – 2020 AGM Address Good morning. For personal use only Today we meet online via the internet. It is difficult to acknowledge, by name, the traditional owners of the lands where all of you are but I do acknowledge those traditional owners and in particular the Gadigal people o
Slide 3: Chairman's address: FY20 highlights
• Funds under Management on 30 June 2020 was $4.05 billion up 19% in one year. And, as we recently announced to the market the first 3 months of this financial year has seen our funds under management increase further to $ 4.32 billion on 30 September 2020. For personal use only • The number of fund
Slide 4: John McMurdo, Managing Director – 2020 AGM Address
John McMurdo, Managing Director – 2020 AGM Address Good morning and good to be with you. It is my hope, next year, to be doing this in person, but until then I For personal use only trust you and your loved ones are keeping safe and well. In a year that has been dominated first by bushfires and then
Slide 5: For personal use only
To finish the financial year as one of the top 3 MySuper balanced options nationally, and to deliver the outperformance in our key funds that Steve highlighted, created truly outstanding outcomes for our customers. For personal use only If investing is at the head of our business, then ethics are un
Slide 6: For personal use only
And so again, I would like to reiterate my thanks and gratitude to everyone at Australian Ethical for their part in delivering a record year in so many ways, and for a very good start to FY21. But of course, as we look beyond our business, it wasn’t just good news this year. For personal use only In
Slide 7: For personal use only
But governments, regulations and philanthropy will not be enough to change course. The transition to a decarbonised economic system will require unprecedented levels of investment, combined with the relentless pressure of capital market forces. For personal use only Both of which the ‘pandemic panic
Slide 8: For personal use only
our investment choices, advocacy, corporate engagement and the work of our Foundation can be linked to the 17 global goals. What we have found is that thanks to our Ethical Charter we have been supporting the spirit of the UN’s SDG For personal use only since we began - 29 years before they were eve
Slide 9: For personal use only
And yet our success at Australian Ethical, proves that there is a better way to do business, which more and more people are embracing. Where all stakeholders including shareholders do better, together. Where people, planet and profit are balanced. For personal use only As a business, we are well-pos
Slide 10: Australian Ethical Investment Ltd 2020 Annual General Meeting
For personal use only Australian Ethical Investment Ltd 2020 Annual General Meeting John McMurdo | Managing Director and CEO
Slide 11: 2020 – a year like no other
2020 – a year like no other For personal use only Bushfires and COVID-19 highlight global inequalities
Slide 12: FY20 highlights: Growth
Growth For personal use only FASTEST GROWING super fund over 5 years1 reaching $4.05 BILLION in FUM. FY20 Record net Funds under NPAT attributable Customer inflows management to shareholders2 highlights numbers up $0.66bn $4.05bn $9.5m Record results 20% 100% 19% 46% in a challenging Revenue excl ye
Slide 13: FY20 highlights: Record profit
Record profit For personal use only NPAT attributable Average Diluted to shareholders* revenue EPS^ 3 year $9.5m, up margin~ CAGR FY20 46% 1.13% 47.6% highlights Dividends 6c, up Includes special performance Final dividend 3.5c payable Continued revenue 20% fee dividend of 1c 16 Sep and profit growt
Slide 14: FY20 highlights: Excellent investment performance
Excellent investment For personal use only performance Investment philosophy Continued focus on Multi award FY20 winning and process robust and returns from clean, “future-building” industries that deliver highlights investment portfolio in both ESG sector and broader market resilient through COVID-
Slide 15: FY20 highlights: Impact for people, planet & animals
INVESTMENT Share investments produced PORTFOLIO 75% less CO2 For personal use only than benchmark10 Nil Nil Nil investment in fossil investment investment fuel companies11 in nuclear in tobacco Engaged with Over 70 Impact over 400 companies companies highlights for people, planet & animals we engage
Slide 16: FY20 highlights: Our Foundation
OUR FOUNDATION 10% of AEI profits For personal use only allocated to not-for-profit organisations16 $1.3m >$5m Donations made to aid bushfire Provisioned for allocated to not- recovery, and to fund COVID-19 impact initiatives for-profits since response initiatives in FY20 inception committed investm
Slide 17: FY20 highlights: Key achievements
Key achievements For personal use only Record social media Fee FY20 followers Multiple reductions on super 135,000 awards19 additional people & pension products20 highlights Climate Other milestones New action from across the Product launch21 through divestment22 business 8
Slide 18: Business update
Business update For personal use only September quarter FUM up 6.5%^ to $4.32bn • Solid netflows of $0.15bn • Positive investment performance for the quarter $0.11bn • Over 59,000 customers, with funded super members now exceeding 50,000. * Managed funds includes SMA ^ since 30 June 2020 9
Slide 19: What next?
For personal use only What next? 1. The urgency 2. The opportunity 3. The future 10
Slide 20: What next?
For personal use only What next? 1. The urgency 2. The opportunity 3. The future 11
Slide 21: The urgency
The urgency For personal use only Carbon dioxide reaches record levels; top 5 global risks all climate-related CARBON DIOXIDE OVER 800,000 YEARS TOP 10 RISKS OVER THE NEXT 10 YEARS Source: World Economic Forum Global Risks Report 2020 12
Slide 22: What next?
For personal use only What next? 1. The urgency 2. The opportunity 3. The future 13
Slide 23: ESG passes the Covid challenge
FINANCIAL TIMES ESG passes the Covid challenge Investment with a sustainable focus is only likely to grow, wealth managers believe Coronavirus is strengthening the hand of ESG investors Pandemic has coincided with strong flows into funds with sustainability mandates ESG funds attract record inflows
Slide 24: What next?
For personal use only What next? 1. The urgency 2. The opportunity 3. The future 15
Slide 25: The Australian Ethical Charter
The Australian Ethical Charter© For personal use only Our alignment to the UN’s Sustainability Development Goals 16
Slide 26: Strategic pillars
Strategic pillars For personal use only Principled Advocates Compelling Impactful investment for a better client business leadership world experience • Extend our leadership in • Foster a coalition of • Enrich our client experience • Enhance our brand to principled investment co-investors for a thro
Slide 27: Investing for a better world.
For personal use only Investing for a better world. PEOPLE PLANET PROFIT 18
Slide 28: Outlook
• There has been a seismic shift in sentiment with demand for For personal use only responsible investing becoming mainstream • We are well positioned to capture opportunities for growth • We are in a strong position with no debt, strong cashflows & Outlook • positive net inflow momentum However FY2
Slide 29: Footnotes
Footnotes For personal use only 1. By both members and funds under management - KPMG 2020 Super Insights Report – published May 2020, 13. B Corps ‘Best for the World Honouree’ Governance 2019. This relates to the Australian Ethical entity, not using statistics published by APRA and ATO as at 30 June
Slide 30: 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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