Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — H1 FY2023 Earnings Presentation
19 slides from Australian Ethical Investment's earnings presentation, Feb 22, 2023
Slide 1: FY23 H1 Analyst pack
Australian Ethical Australian Ethical Investment Ltd FY23 H1- Analyst pack 22 February 2023 Ag
Slide 2: Overview & history
Overview & history Y Our purpose Investing for a better world 35+ years offering investment and super solutions using our leading ethical investing approach <> €> 100+ employees and growing wu, Our vision Money as a force for good Best for the World for Customer & Governance by B Corps 10% of annual
Slide 3: How we invest
How we invest Creating returns with positive impact we UNIVERSE OF So, so POTENTIAL . INVESTMENTS Rigorous Investment Constructing resilient portfolios within our ethical universe Ethical assessment Ongoing assessment relative to ethical frameworks RETURNS WITH POSITIVE IMPACT Active engagement Infl
Slide 4: Our business model
Our business model We offer a broad range of products for five different audience segments. Channels Direct Customers Product packaging Super and Pension 13 investment options Manufacturing Investment Management We manage: domestic Employers equities, international Managed funds equities, income & f
Slide 5: FUM summary - Asset Class & Strategy
FUM summary - Asset Class & Strategy Asset Class FUM at 31 Dec 22 ($bn) ~FUM at 30 Jun 22 ($bn) Domestic Equities* 3.60 2.98 International Equity 1.72 1.32 Cash 0.22 0.15 Fixed Income 174 1.24 Unlisted Property~ 0.55 0.44 Alternatives~ 0.54 0.09 Total 8.37 6.20 Asset Strategy FUM at 31 Dec 22 ($bn)
Slide 6: FUM summary — Managed Funds
FUM summary — Managed Funds Fund/option Current Management Fee FUM at 30 June 22 Applications and _Reclass. and switches Market movement / FUM at 31 Dec 22 ($bn) Redemptions Net _ + Transfer 1H23 (Sbn) Other 1H23 ($bn) ($bn) flows for 1H23 ($bn) Managed Funds - Retail Balanced Fund 1.42% 0.09 - - -
Slide 7: FUM summary - Superannuation
FUM summary - Superannuation Fund/option Current FUM at 30 Jun 22 Net flows for 1H23_ Christian Super SFT == Market movement / FUM at 31 Dec 22 Management ($bn) ($bn) (SD) Other 1H23 ($bn) ($bn) Fee Superannuation Defensive 0.20% 0.12 0.00 0.05 0.01 0.18 Conservative 0.55% 0.14 0.01 0.17 (0.00) 0.33
Slide 8: Return (%pa)
12 11 10 Return (%pa) 9 8 7 6 5 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 Std Dev (%pa)
Slide 9: Australian Shares Fund
Australian Shares Fund Rolling 1 Year Net Return = Australian Shares Fund (Wholesale) =~ S&P / ASX 300 212017 06/2021 2/2014 2/201 06/2017 Rolling 3 Year Net Return* — Australian Shares Fund (Wholesale) ——~ S&P / ASX 300 25% 2/2021 2/2018 06/202 06/2015 Flagship Australian Shares Fund has delivered
Slide 10: Emerging Companies Fund
Emerging Companies Fund Rolling 1 Year Net Return 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 20.0% 40.0% 06/2016 12/2016 06/2017 12/2017 —— Emerging Companies Fund (Wholesale) 06/2018 12/2018 06/2019 12/2019 06/2020 == S&P / ASX Small Industrials 12/2020 06/2021 42/2021 06/2022 42/2022 * The Emerging Compa
Slide 11: Fees
Fees Superannuation average revenue margin 7.00 1.60% Superannuation average Tevenue margin * 6.00 1.40% 1.20% 5.00 1.00% 4.00 Average Superannuation 0.80% FUM (Sbn) (LHS4) 3.00 0.60% 2.00 0.40% 1.00 0.20% 0.00 0.00% 2018 2019 2020 2021 2022 Managed Funds average revenue margin~ Includes retail, who
Slide 12: Investment team
Investment team Reflects team structure as at February 2023, Chief Investment Officer Michael Murray, CFA John Woods, CFA Clinton Leong Andy Gracey Ray Gin Tim Kelly ‘Angus Dennis Michelle Wigglesworth, CFA Mark Williams, MBA Deana Mitchell, CFA. Jason Korchinski Appointment pending Head of Domestic
Slide 13: Investment team (contd.)
Investment team (contd. Reflects team structure as at February 2023, Team member Position Jason Huang Quantitative Analyst Senior Investment Analyst Senior Investment Analyst Julian Richman, CFA Yong Tan, CFA Daniel Koleth, CFA Senior Investment Analyst Investment Performance & Data Analyst Angela S
Slide 14: Ethics team
Ethics team Reflects team structure as at February 2023, Stuart Palmer Amanda Richman Olivia Webster Persephone Fraser Head of Ethics Research Ethical Stewardship Lead Senior Impact Analyst Ethics Analyst Te ure 8.5 years at AEI 4.5 years at AEI 2.5 years at AEI 2 years at AEI lence + 30+ years expe
Slide 15: Growth metrics
Growth metrics AE growth metrics FY22 FY21 FY20 1H23 2H22 1H22 2H21 1H21 FUM ~ managed funds - retail/wsale ($bn) 178 1.76 1.06 187 178 2.10 176 1.40 FUM - managed funds ~ insto (bn) 0.19 0.41 0.27 0.00 0.19 0.38 0.41 0.35 FUM ~ super ($bn) 4.23 3.90 2.72 6.50 4,23 4.46 3.90 3.30 FUM- total ($bn) 6.
Slide 16: Financial metrics
Financial metrics Financial metrics Fy22 FY21 FY20 1H23 2H22 1H22 2H21 1H21 FUM based revenue (ex performance fee) (Sm) 65.6 516 394 33.9 328 32.9 28.1 23.5 Performance fee ($m) 0.4 29 3.6 = 0.4 = 29 2 Member based revenue ($m)* 47 41 3.2 24 24 23 24 24 Operating revenue ($m) 70.8 58.7 49.9 36.6 35.
Slide 17: Contacts
Contacts Australian Ethical AS John McMurdo Chief Executive Officer &, 0449 903 207 Mark Simons Chief Financial Officer [J [email protected] 0434369746 Melanie Hill Head of Business Performance & Investor Relations & 0428 879 348 Elise Davidson BlueChip Communication & 0405 825 005 v7
Slide 18: Disclaimer
Disclaimer Australian Ethical Investment Ltd (ABN 47 003 188 930; AFSL No. 229949) is the Responsible Entity and Investment Manager of the Australian Ethical Managed Investment Funds. Interests in the Australian Ethical Retail Superannuation Fund (ABN 49 633 667 743; Fund Registration No. R1004731)
Slide 19: fae)
a) © —— 4 S fae) — sel
Australian Ethical Investment — H1 FY2023 Earnings Presentation on 6ix