Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — FY2023 Earnings Presentation
20 slides from Australian Ethical Investment's earnings presentation, Aug 25, 2023
Slide 1: Australian Ethical
Australian Ethical As 25 August 2023
Slide 2: Overview & history
Overview & history For over 35 years, we have sought to create a more sustainable and equitable world through the power of investment Y Our purpose KON Our vision Ss 100+ employees Investing for a better world Money as a force for good \v and growing o 35+ years (S) Managing $9bn+ -<- 10% of annual
Slide 3: Investing for a better world
Divestment Investing for a better world Companies we invest in BETTER FUTURE FOR PEOPLE, PLANET AND ANIMALS Company Assessments Company Visits Sector Exclusion Risk Analysis Industry Frameworks Fundamental + Investment Analysis Issues Frameworks Interpretation Principles 0; yl TENTIAL investment oPP
Slide 4: Our business model
Our business model We offer a broad range of products for five different audience segments. Channels Direct Customers Product packaging Super and Pension 13 investment options Manufacturing Direct via employers Advisers Institutional values aligned organisations Managed funds 9 managed funds — whole
Slide 5: Channel, product and asset class overview
Channel, product and asset class overview Direct remains predominant channel with advised channel now material 17% 83% Advised Bh Direct following Christian Super SFT FUM by product [Hl Menaged funds wholesale” fj Managed funds retail HL Superannuation Super FUM a larger proportion of overall book I
Slide 6: FUM summary - Asset Class & Strategy
FUM summary - Asset Class & Strategy Asset Class FUM at 30 Te FUM at 30 oa Domestic Equities* 3.78 2.98 International Equity 2:10 1.32 Cash 0.27 0.15 Fixed Income (domestic) 1.47 1.24 Fixed Income (global) 0.46 - Unlisted Property~ 0.64 0.44 Alternatives~ 0.47 0.09 Total 9.20 6.20 Asset Strategy FUM
Slide 7: FUM summary - Superannuation
FUM summary - Superannuation Fund/option Current FUMat30Jun22 Net flows for FY23 Christian Super SFT Market movement/ = FUM at 30 Jun 23 Management (Sbn) (Sbn) (Sbn) Other (Sbn) (Sbn) Fee Superannuation Defensive 0.20% 0.12 (0.00) 0.05 0.01 0.18 Conservative 0.55% 0.14 0.01 0.17 0.01 0.33 Balanced A
Slide 8: FUM summary - Managed Funds
FUM summary — Managed Funds Fund/option Current Management Fee FUM at 30 June 22 Applications and _Reclass. and switches Market movement / FUM at 30 June 23 ($bn) Redemptions Net + Transfer (Sbn) Other (Sbn) (Sbn) flows ($bn) Managed Funds — Wholesale Income Fund 0.20% 0.01 (0.00) 0.00 0.00 0.01 Fix
Slide 9: Investment leadership
Investment leadership Strong long-term returns | Australian Shares Fund Value of $1000 invested since inception —— Australian Shares Fund (Retail) -—-~ S&P / ASX Small Ordinaries* === S&P / ASX 300 Risk/return over ten years to June 2023 16 pa) Ret 0 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Std
Slide 10: Australian Shares Fund
Australian Shares Fund Rolling 1 Year Net Return = Australian Shares Fund (Wholesale)” =~ S&P / ASX 300 80% 8 Rolling 3 Year Net Return* — Australian Shares Fund (Wholesale)”. _ —~ S&P / ASX 300 212021 06/202 + Australian Shares Fund has delivered positive rolling 3 year returns (annualised) for all
Slide 11: Emerging Companies Fund
Emerging Companies Fund + The Emerging Companies Fund (ECF) attracts a performance fee for Rolling 1 Year Net Return outperformance over benchmark 100.0% + The ECF has outperformed benchmark 80.0% for all periods of two years and above * Over the last year ECF investments in 60.0% Financials and Uti
Slide 12: Fees
Fees Additional information Margins have reduced over time as we continue to pass on benefits Superannuation average revenue margin Managed Funds average revenue margin~ bate trannies members Includes retail, wholesale” and institutional + Average revenue margin across all products (including instit
Slide 13: Investment team
Investment team at August 2023 Team member Position Tenure Experience Ludovic Theau John Woods, CFA Head of Domestic Equities Clinton Leong Andy Gracey Tim Kelly, Angus Dennis Mark Williams, MBA Deana Mitchell, CFA Jason Korchinski Chief Investment Officer Deputy Chief Investment Officer and Head of
Slide 14: Investment team (contd.)
Investment team (contd. structure as at August 2023, Team member Position Tenure Experience Michelle Senior Equities Commenced February 2023 17+ years of Investment Experience Wigglesworth, CFA Analyst Prior to AEI, she was at Washington H. Soul Pattinson and Milton Julian Richman, CFA Daniel Koleth
Slide 15: Team member Position Tenure Experience
Team member Position Tenure Experience AlisonGeorge Headofimpactand | Commenced May 2023 20+ experience in ethical investment Ethics Alison has more than 20 years’ experience in responsible investment and stewardship, working with numerous industry leaders in her prior roles with Pendal and Regnan.
Slide 16: Growth metrics
Growth metrics AE growth metrics Fy23FY22.FY2Y—o2H23—=SH23—=DH2_—H22_—=S HTT FUM - managed funds - retail/wsale ($bn) 2.00 178 176 2.00 1.87, 178 2.10 176 1.40 FUM - managed funds - insto ($bn) 0.00 0.19 0.41 0.00 0.00 0.19 0.38 0.41 0.35 FUM - super (excluding SFT) (Sbn) 5.28 4.23 3.90 5.28 4.57 4.
Slide 17: Financial metrics
Financial metrics Financial metrics FY23 FY22 Fy21 2H23 1H23 2H22 1H22 2H21 1H21 FUM based revenue (ex performance fee) ($m) 75.0 65.6 516 ad 33.9 328 32.9 284 23.5 Performance fee ($m) 2 04 29 2 2 04 - 29 - Member based revenue ($m) 54 47 4a 27 2.4 2.4 2.3 24 24 Other ($m) 1.0 o4 o4 07 03 0.0 0.0 0
Slide 18: Contact
Contact John McMurdo Chief Executive Officer [email protected] 0449 903 207 Mark Simons Chief Financial Officer [email protected] 0434 369 746 Melanie Hill Head of Business Performance & Investor Relations [email protected] 0428 879 348 Elise Davidson Blue
Slide 19: Disclaimer
Disclaimer Australian Ethical Investment Ltd (ABN 47 003 188 930; AFSL No. 229949) (AEl) is the Responsible Entity and Investment Manager of the Australian Ethical Managed Funds. Interests in the Australian Ethical Retail Superannuation Fund (ABN 49 633 667 743) are offered by Australian Ethical Inv
Slide 20: Thank you
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