Australian Ethical Investment (AEF) investor relations material

Executive summary

• Celebrated 40 years as a purpose-driven, ethical investment manager, emphasizing long-term returns, positive impact, and a consistent strategy focused on superannuation and diversified investments.

• Achieved record FY26 results with UPAT up 15% to $27.3 million and NPAT up 29% to $25.7 million, supported by disciplined execution of strategic initiatives and business platform enhancements.

• Recognized with multiple industry awards for ESG leadership, customer satisfaction, and investment performance.

• Strategic milestones included digital platform transition, insurance harmonisation, and new fund launches.

Financial highlights

• Funds under management (FUM) reached a record $14.5 billion at 30 June 2026, up 4% year-over-year.

• Operating revenue grew 9% to $129.5 million, driven by 11% average FUM growth.

• Net profit after tax (NPAT) attributable to shareholders rose 29% to $25.7 million; underlying profit after tax (UPAT) up 15% to $27.3 million.

• Operating expenses increased 7% to $90.4 million, reflecting investment in growth and capability.

• Cost to income ratio improved to 69.8% from 71.4% in FY25.

• Fully franked final dividend of 10 cents per share, total annual dividend 18 cents, up 29% year-over-year, with payout ratio at 80%.

Outlook and guidance

• Positive net flows expected to continue in FY27, supported by superannuation and middle-market momentum.

• Revenue margin expected to remain stable at 0.89%, with strong cost discipline targeting expense growth below revenue growth.

• Continued investment in scalable business platforms, technology, digital transformation, and artificial intelligence to drive efficiency and growth.

• Focus on expanding employer channel capability, member retention, and product innovation, especially in the middle market.

• Planned governance transformation and completion of APRA licence initiatives.