1. Current and Future Systemic Risks Threatening Australian Corporate Performance – Overseas Factors Nathan Lim CFA Portfolio Manager – International Equities Trust Investing in Responsibility Conference Sydney, 10 Sept 2013

2. Disclaimer Please be aware that this presentation provides general information only, and is specifically for the purposes of professional review of the investment capabilities of Australian Ethical Investments Limited. It is not intended for general distribution or use by advisers and personal investors. You should refer to a copy of the Product Disclosure Statement and our website before considering investing. Units in the Trusts are issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, Australian Financial Services Licence No. 229949). Interests in the Australian Ethical Retail Superannuation Fund are offered by Australian Ethical Investment Ltd by arrangement with its subsidiary and Trustee of the Fund, Australian Ethical Superannuation Pty Ltd (ABN 43 079 259 733, Registerable Superannuation Entity Licence No. L0001441). The registration number of the Australian Ethical Retail Superannuation Fund is R1004731.

3. Agenda 1 Australian Ethical’s Investment Approach 2 Vehicle Emission Standards 3 US Policy Support for Natural Gas 4 EU Emission Trading System Fix 5 China Getting Serious About Pollution 6 Nuclear Phase Out

4. Fund Performance As at 31 July 20133 Months1 year 3 years (p.a.) Inception (p.a.) International Equities Trust25.1%50.9%3.0%3.6% Benchmark^24.7%59.9%16.9%13.6% MSCI Global Climate TR Net (AUD)^^ 24.7%59.5% MSCI World TR Net (AUD)^^ 18.8%44.5%13.0%11.0% ^From 1 September 2012, the Trust changed its benchmark from the MSCI World Total Return Net index in AUD to the MSCI Global Climate Total Return Net Index in AUD. The Benchmark return is thus a composite return of the MSCI World up to 31 August 2012 and then the MSCI Global Climate thereafter. The benchmark was changed to provide a more representative investment universe for the fund and is therefore more suitable to measure performance against. ^^Index returns are provided for illustrative purposes only. The MSCI Global Climate Net Index inception day is 31 August 2010

5. Investment Approach Macro Economic Assessment Energy Policy Assessment Stock Selection USEU28ChinaJapanAustralia Coal Negative (19.8%)Neutral (17.6%)Negative (68.5%)Neutral (26.0%)Neutral (39.2%) Natural Gas Supportive (29.6%)Neutral (23.9%)Supportive (4.7%)Supportive (22.0%)Neutral (18.2%) Oil Neutral (37.1%)Negative (36.5%)Negative (17.7%)Negative (45.6%)Neutral (37.1%) Nuclear Negative (8.3%)Negative (11.9%)Supportive (0.8%)Supportive (0.9%)Neutral (0.0%) Renewable Neutral (2.3%,2.9%) Supportive (5.7%,4.4%) Supportive (1.2%,7.1%) Supportive (1.7%,3.8%) Neutral (2.2%,3.2%) RenewableNatural GasHydroNuclear Oil Coal Primary Energy Demand (Share %)

6. Vehicle Emission Standards source: The International Council on Clean Transportation

7. US Policy Support for Natural Gas source: Global Energy Weekly – 20 Dec 2012 – Bank of America Merrill Lynch

8. EU Emission Trading System Fix source: Bloomberg Legislated Australian carbon price July 2014, $25.40

9. China Getting Serious About Pollution 1952 Great SmogUK Clean Air Act 1969 Cuyahoga River Fire US Environmental Protection Agency 2008 National Melamine Poisoning 2009 National Lead Poisoning 2013 Beijing Smog Numerous policies to increase energy efficiency and reduce energy intensity

10. Nuclear Phase Out source: German Federal Statistical Office, Australian Ethical assumptions

11. Nuclear Phase Out source:The Federation of Electric Power Companies of Japan, Australian Ethical assumptions

12. Any Questions? Thank you