Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — 6th Australian Microcap Investment Conference 2015
36 slides from Australian Ethical Investment's conference presentation, Oct 21, 2015
Slide 1: Australian Ethical presents at the Australian Microcap Investment Conference
21 October 2015 Australian Ethical presents at the Australian Microcap Investment Conference Australian Ethical Investment Limited (ASX:AEF) is pleased to announce that it has been invited to present For personal use only at the 6th annual Australian Microcap Investment Conference in Melbourne P
Slide 2: Contact and About Australian Ethical
For more information, please contact: Rachel Maher Honner 02 8248 3746 About Australian Ethical For personal use only Australian Ethical is a fund manager with a difference – investing money in a way that aims to provide financial security for investors and positive, sustainable change for society a
Slide 3: Australian Microcap Investment Conference
For personal use only Australian Microcap Investment Conference Phil Vernon – Managing Director 21 October 2015
Slide 4: Who we are
For personal use only Who we are
Slide 5: Leader in ethical investing and wealth management
Leader in ethical investing and wealth management For personal use only Achieving strong Almost 30 years of investing with a difference; an unwavering commitment to financial and ethical investing shareholder returns Unrivalled and trusted brand while maintaining Thought leader in ethical inve
Slide 6: Our investment mandate
Our investment mandate For personal use only We invest in areas such as: We avoid companies involved in: 4
Slide 7: Company overview
Company overview CORPORATE OVERVIEW 12 MONTH SHARE PRICE PERFORMANCE For personal use only Australian Ethical is Australia’s largest dedicated ethical investment and superannuation manager listed on the ASX Investments are guided by the Australian Ethical Charter which guides both the positive s
Slide 8: Business model
Business model For personal use only Vertically-integrated business, offering a broad range of products, across most asset classes accessed through multiple channels Channels Direct Employers Advisers Product Super and Pension Managed funds A$777m (67%) A$390m (33%) packaging 13 options 8 products I
Slide 9: FUM by product and channel – June 2015
FUM by product and channel – 30 June 2015 For personal use only Superannuation makes up the majority of our FUM, traditionally a more stable source of FUM than managed funds 7
Slide 10: Australian Ethical Foundation and community grants
Australian Ethical Foundation and community grants For personal use only Australian Ethical has donated over A$2m to charitable, benevolent and conservation purposes including A$373k set aside in FY2015 10% of profits distributed in community grants Core part of mission and alignment with client
Slide 11: Credentialed Board of Directors
Credentialed Board of Directors For personal use only STEVE GIBBS TONY COLE Non-Executive Chair Non-Executive Director Former CEO of ARIA, superfund for federal 17+ years as a Senior Partner in Mercer’s govt. employees Investment Consulting business Former Executive Officer of Australian AO
Slide 12: Proven management team with a record of success
Proven management team with a record of success For personal use only PHILLIP VERNON Managing Director Details on previous page DAVID BARTON FIONA HORAN Chief Financial Officer Head of People and Culture 20+ years of financial services experience 20+ years in organisational development roles i
Slide 13: The ethical investment market
For personal use only The ethical investment market
Slide 14: Ethical investment market is growing strongly
Ethical investment market is growing strongly For personal use only Core Responsible Investment FUM grew by 24% in the last 12 months and has doubled in the past two years; average returns over 10 years have outperformed mainstream indices Strong growth Strong returns Core responsible investment FUM
Slide 15: Our target market
Our target market For personal use only Our target market is “ethically-active” Australians, which makes up a total of 40% of the investor market 13
Slide 16: Trends to 2020
Trends to 2020 For personal use only Rising social consciousness Increasing social consciousness is having a profound impact on ethical consumerism and investment. In the past 2 years, money flowing into ethical funds has doubled and currently 40% of consumers consider themselves to be ethical. This
Slide 17: Trends to 2020
Trends to 2020 For personal use only Customer expectations Customers will increasingly demand better service as the “instant gratification” culture continues to perpetuate. The success of businesses and products will be driven by features, service, and how easy they are to deal with. Fee pressure As
Slide 18: Our Strategy
For personal use only Our Strategy
Slide 19: Financial wellbeing and impact
Financial wellbeing and impact For personal use only Our vision is to be a broad based ethical financial services firm offering clients financial wellbeing and positive social impact Ethical advice Financial advice Investments Super and retirement Insurance Banking Philanthropy 17
Slide 20: Our pathway to 2020
Our pathway to 2020 For personal use only Educate the ethical consumer We aim to educate the ethically-conscious, but inactive investor, on how to align their investment practices with their values. Bust the investment myth We aim to bust the myth that ethical investments underperform by providing t
Slide 21: Our pathway to 2020
Our pathway to 2020 For personal use only Digital mastery We will invest in our digital skills and capability to ensure that we are at the cutting edge of developments in digital and online marketing techniques, transaction optimisation and delivery of advice and content. Competitive fees We aim to
Slide 22: Channel strategy
Channel strategy For personal use only Our strong, highly engaged digital community, targeted digital advertising, optimisation of the online experience and support of many aligned organisations continues to give us strong growth from the Direct direct channel. We aim to be the default superannuatio
Slide 23: Business model evolution
Business model evolution For personal use only Our aim is to become a vertically integrated, full service, ethical financial services provider Channels Direct Employers Advisers Institutional Super Investments Advice Banking Insurance Accumulation Limited Product packaging Managed funds Transaction
Slide 24: Our performance
For personal use only Our performance
Slide 25: Top quartile asset management performance
Top quartile asset management performance For personal use only Proven track record of asset management outperformance Regular top quartile performance by numerous products Flagship Australian Shares fund recently celebrated 20th anniversary, having delivered top quartile performance over the pe
Slide 26: Strong digital capability
Strong digital capability For personal use only Excellent brand recognition and strong digital capabilities Australian Ethical social media followers 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Facebook engagement rate 12% 10% 8% 6% 4% 2% 0% 24 Engagement Rate: Average engagement repre
Slide 27: Established ability to attract new business
Established ability to attract new business For personal use only Growth has been driven by asset management performance, our strong brand, direct retail strategy and strict ethical overlay Funds flow (A$m) Superannuation members 300 20,000 250 18,000 200 16,000 14,000 150 12,000 100 10,000 50 8,000
Slide 28: Outstanding operational and financial performance
5 year performance For personal use only Outstanding operational and financial performance 26
Slide 29: Outstanding shareholder returns
Outstanding shareholder returns Operating performance has translated into attractive shareholder returns For personal use only Key Australian Ethical has a proven track record of metric Outcome converting its competitive advantages into positive financial outcomes for shareholders FUM 14% averag
Slide 30: FY 2015 Results
For personal use only FY 2015 Results
Slide 31: Highlights
Highlights For personal use only Net inflows almost double that of previous year. Strong growth Superannuation client growth 20% above previous year. Superannuation fees on key MySuper product reduced by Improved competitiveness 0.67%. Strategy to be at 75th percentile of peer group by 2020. Strong
Slide 32: Financial results
Financial results For personal use only Solid profit result in year of transition Key financials (A$000s unless specified otherwise) FY2014 FY2015 Change (yoy) Revenue 19,889 21,171 6% Operating expenses (14,476) (16,478) (14%) Non-operating expenses (2,871) (2,723) 6% NPAT 2,542 1,970 (23%) UPAT 1
Slide 33: Funds under management and net inflows
Funds under management and net inflows For personal use only Strong growth in net flows in both superannuation and managed funds (A$m) FY2014 FY2015 Change (yoy) Opening 708 887 25% Super flows 78 132 70% Managed funds 14 47 240% Net flows 92 179 96% Market movement 87 101 14% Closing 887 1,167 32%
Slide 34: Summary
For personal use only Summary
Slide 35: Summary
Summary For personal use only Strong growth in ethical investing Macro trends Long term growth in superannuation Unique combination of ethics and performance Products Competitive on fees Opportunities for product packaging and specialisation Strong in digital direct Sales & marketing P
Slide 36: Disclaimer
Disclaimer Australian Ethical Investment Ltd (ABN 47 003 188 930; Australian Financial Services Licence No. 229949) is the For personal use only Responsible Entity and Investment Manager of the Australian Ethical Managed Investment Funds. Interests in the Australian Ethical Retail Superannuation Fun
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