Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — H1 FY2022 Earnings Presentation
18 slides from Australian Ethical Investment's earnings presentation, Feb 23, 2022
Slide 1: FY22 H1 Analyst pack
Australian Ethical Australian Ethical Investment Ltd FY22 H1- Analyst pack 23 February 2022
Slide 2: Overview & history
Overview & history © Our purpose Investing for a better world vision Money as a force for good Managing $6.5bon+ as an ASX 300 listed investment manager, on behalf of members and investors = 35+ years offering investment and super solutions using our leading ethical investing approach Best for the W
Slide 3: How we invest
How we invest Creating returns with positive impact we UNIVERSE OF a“ 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 Influence
Slide 4: Our business model
Our business model We offer a broad range of products for five different audience segments. Product Packaging Direct a iti Exchange Customers Employers Advisers Institutions traded Super and Pension 13 investment options Managed Funds 9 managed funds — wholesale and retail offerings SMA 1 Australian
Slide 5: FUM by asset class
Domestic Equities* 3.54 Cash 0.23 International Equity 1.51 Fixed Income 1.27 Alternatives 0.06 Unlisted Property 0.33 Total 6.94 * Including NZ equities Australian Ethical AS
Slide 6: Current FUM: managed funds
Current FUMal Management Fee 21 (Sbn) 1H22(Sbn) _ switches Jun Net flows for Reclass.and Performance for FUM at 31 Dec Fund/option (Sbn) (Sbn) Managed Funds - Retail Pre aay ee 009 001 «on 20 20a Balanced Fund 0.09 0.03 (0.03) 0.00 0.10 Australian Shares 1.69% 0.21 0.02 (0.02) 0.01 0.22 Emerging Com
Slide 7: FUM summary - Superannuation
Net flows for 1H: Perform FUM summary - Superannuation = Defensive 0.20% 0.09 0.00 0.00 0.09 Conservative 0.63% 0.13 0.00 0.01 0.15 Balanced Accum / Pension 0.64% / 0.67% 217 0.30 0.05 2.52 International Shares 0.89% 0.10 0.00 0.01 0.12 Growth 0.99% 0.56 0.03 0.05 0.64 High Growth 0.99% 0.18 0.01 0.
Slide 8: Our investments by sector & asset type
Our investments by sector & asset type By asset type i Fixed income 18% BB Attematives Bh international Equities 2: 1 Cash, FRNs and Short Duration Fixed interest 3 BB Australian & NZ Equities 51% EB Unlisted Property 5% As at 31 December 2021 By sector compared to the market 24.8% Where we invest m
Slide 9: Headcount Summary
Headcount Summary FY19 H1 FY19 H2 FY20 H1 FY20 H2 FY21H1 FY21H2 FY22 HI Sales & Marketing Client Services Finance Team Investments & Ethical Research © Operations ™ Executive and Support* * Executive and Support Team headcount includes Executive Officer Superannuation and Risk and Compliance, Legal,
Slide 10: Investment leadership
Investment leadership Strong returns, with lower risk | Australian Shares Fund Value of $1000 invested since inception Risk/return over ten years to 31 December 2021 Annualised Return Statistic 18,000 200 16,000 18.0 44,000 160 42,000 140 e 40,000 120 8,000 @ 6,000 100 4,000 80 | 2,000 60 0 40 SERRE
Slide 11: Fees
Fees Superannuation average revenue margin 5.0 1.3% 45 Superannuation average 1.3% revenue margin (RHS)* 40 1.2% 35 a 1.2% 25 4.1% Superannuation 2.0 FUM (Sbn) (LHS) 40h: 15 1.0% 10 as 1.0% 00 0.9% 2017 2018 2019 2020 2021 * As at31 December of each year * Average revenue margin calculated on last t
Slide 12: Investment team
Investment team nber David Macri, CFA Position Chief Investment Officer Tenure 13 years at AEI CIO since 2012 Experience 20+ years of investment experience Previously at Macquarie Securities, Credit Suisse, Mellon, Mercer Angus Dennis Investment Director Commenced February 2022 20+ years of investme
Slide 13: Ethics research team
Team Position Tenure Experience member Stuart Palmer Head of Ethics 8 years at AEI + 30+ years experience in the financial, investment and legal sectors Research + Previously Head of Ethics Services at St James Ethics Centre, helping develop strong organisational leadership and culture to guide good
Slide 14: Growth metrics
Growth metrics AE growth metrics FUM ~ managed funds (bn) 2.47 133 116 2.47 175 1.33 1.32 1.16 0.96 FUM~ super (bn) 3.90 2.72 2.26 3.90 3.30 2.72 2.56 2.26 189 FUM - total (Sbn) 6.07 4.05 3.42 6.07 5.05 4.05 3.87 3.42 2.85 Investor numbers 11,793 8,995, 7,776 11,793 10,11 8,995 8,302 7,776 7,653 Mem
Slide 15: Financial metrics
Financial metrics Financial metrics FY20 1H20 FUM based revenue (ex performance fee) ($m) Performance fee ($m) 29 36 08 29 - 36 - 08 - Member based revenue ($m) 44 32 a7 2A 2A 1.6 1.6 19 18 Operating revenue ($m) 587 49.9 41.0 33.1 25.6 26.6 23.3 21.2 19.8 UPAT - pre performance fee (Sm) 92 7.0 61 4
Slide 16: Contacts
John McMurdo Melanie Hill Chief Executive Officer Head of Business Performance & Investor Relations Contacts & 0449 903 207 & 0428 879 348 Mark Simons Camilla Herring Chief Financial Officer Head of Communications M4 [email protected] | [email protected] & 0434 369 746
Slide 17: 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 18: Thank you
Thank you Australian Ethical Ag 18
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