Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — Shareholder Meeting (October 2017)
29 slides from Australian Ethical Investment's shareholder meeting presentation, Oct 25, 2017
Slide 1: Australian Ethical Annual General Meeting 2017
For personal use only Australian Ethical Annual General Meeting 2017 25 October 2017
Slide 2: Steve Gibbs, Chairman
For personal use only Steve Gibbs, Chairman
Slide 3: Strategy update
For personal use only Strategy update Phil Vernon, Managing Director and CEO 3
Slide 4: Ethical and financial outcomes can be achieved together
For personal use only A focus solely on profits and returns Ethical and financial outcomes can be places our planet at great risk achieved together Take action to make a difference. Capital has enormous power to We lead by example and inspire others. do good Individuals can make a difference through
Slide 5: Responsible investment growth in Australasia
For personal use only $billions $64.9 $51.5 $31.6 $25.6 $15.2 $16.5 2011 2012 2013 2014 2015 2016 Source: Responsible Investment Association Australasia 2017 Benchmark report
Slide 6: Investor attitudes to ethics and financial returns
For personal use only FINANCIALLY-LED, ETHICS THE DIFFERENTIATOR ETHICS BUT INACTIVE 21% 39% ETHICS-DOMINANT, FINANCIALS AT ‘HYGIENE’ STANDARD HAPPILY UNETHICAL ETHICS-DOMINANT, WILLING 20% TO COMPROMISE 9% 11%
Slide 7: Australian Share Fund performance versus indices
For personal use only 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 1995 10000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ASX Small Industrials S&P/ASX All Ordinaries Australian Share Fund -Net
Slide 8: Channels, products and investment management
For personal use only Channels Direct customers Employers Advisers Super and Pension Managed funds Product packaging 13 investment options 8 managed funds Investment management Manufacturing Domestic equities, international equities, fixed income, cash All managed in-house
Slide 9: Year in review
For personal use only Year in review Phil Vernon, Managing Director and CEO 9
Slide 10: Number of super members
For personal use only Number of super members Super 35,352 members 26,342 +34% 14,868 17,663 21,196 2013 2014 2015 2016 2017
Slide 11: Annual flows
For personal use only Annual flows 700 600 500 Net flows up 400 300 42% 200 $m 100 0 (100) (200) 2013 2014 2015 2016 2017 Managed Funds Superannuation Net Flows
Slide 12: Funds under management
For personal use only FUM ($m Managed Funds (Direct), 23.0% Management Funds Superannuation 1,491.3 1,041.0 787.7 Managed Funds 458.6 586.9 (Advised), 7.0% 379.0 515.7 654.1 253.5 300.3 2013 2014 2015 2016 2017 Institutional, 0.4% Funds under Change Super (Direct), management ($m) 30 June 2016 30 Ju
Slide 13: Growth relative to other super funds
For personal use only 2016 Growth By AUM By members Australian Ethical Super Australian Ethical Super Netwealth Investments SMSF Care Super Macquarie Prime Super Netwealth Investments Sunsuper Guild Super Unisuper Catholic Super Qsuper Zurich HostPlus Legal Super BUSSQ State Super Guild Super HostPl
Slide 14: Financial results summary
For personal use only Revenue 23,040 28,305 23% Operating expenses (17,054) (22,310) 31% Non operating expenses (1,074) (1,937) 80% Income tax expense (1,726) (1,134) (34%) Total expenses (19,854) (25,381) 28% Net profit after tax-statutory 3,186 2,924 (8%) Less Foundation results* (176) (4) - Net p
Slide 15: Key financials
Key financials For personal use only Funds under management* ($m) 28.3 Revenue ($m) 2,145.4 23.0 19.9 21.2 Strong 1,556.7 16.4 underlying profit 1,166.7 887.2 and revenue 712.1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 * before distributions Profit after tax* ($m Underlying profit after tax*
Slide 16: Key financials
Key financials For personal use only Share price ($) Dividends (cps) 94.6 300 81.1 260 58.8 200 200 35.5 85 19.5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Basic Earnings Per Share (cps) Return on equity (%) 282 30.3% 249 25.1% 270 22.2% 190 19.1% 15.2% 105 2013 2014 2015 2016 2017 2013 2014
Slide 17: Market cap over five years
For personal use only 120 100 Market cap 80 over five $ Millions 60 years 40 20 - 1/1/13 1/1/14 1/1/15 1/1/16 1/1/17 Source: ASX and AFR
Slide 18: Total FUM and average revenue margin
For personal use only Total FUM Total average revenue margin ARM % $2,500 2.50% $2,000 2.00% $1,500 1.50% FUM($M) $1,000 1.00% $500 0.50% $0 0.00% 2013 2014 2015 2016 2017
Slide 19: Portfolio carbon emissions intensity
For personal use only 300 66% less CO2 250 than Tonnes CO2 e/ AUD in revenue Portfolio benchmark 200 emissions 150 Benchmark intensity 100 50 0 Dec 14 Dec 15 Dec 16
Slide 20: Australian Shares Fund outperforms benchmark
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 12.1 7.0 10.4 9.9 10.0 S&P/ASX Small In
Slide 21: Balanced Accumulation Option 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 Accumulation Option 9.6 6.2 7.5 9.0 6.8 3.
Slide 22: 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
Slide 23: The Foundation
The Foundation For personal use only • Over $2.2 million since 2000 • $28K distributed to 18 not for profit organisations in 2017 • $320K provisioned for community impact in 2018 • 450 applicants • 16,000 people voted 10% of AEI profits donated to not-for-profit organisations Wildlife Asia
Slide 24: Highlights 2017
Growth Investment Revenue Performance For personal use only • Fastest growing • Strong growth superannuation • Australian Shares fund offsets continued fund in 2016 consistently outperforming fee reductions • Superannuation benchmark over 20+ years • Revenues up 23% clients up 34% • MySuper op
Slide 25: For personal use only
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
Slide 26: Resolutions
For personal use only Resolutions 26
Slide 27: Meeting close
For personal use only Meeting close
Slide 28: Australian Ethical Rebrand
For personal use only Australian Ethical Rebrand Allyson Lowbridge, Chief Customer Officer
Slide 29: For personal use only
For personal use only 29
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