Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — Investor Presentation (August 2013)
22 slides from Magellan Financial's investor presentation, Aug 29, 2013
Slide 1: Investor Briefing
For personal use only Magellan Financial Group Limited Investor Briefing Hamish Douglass Chief Executive Officer 29th AUGUST 2013
Slide 2: Magellan Financial Group Limited Overview
Magellan Financial Group Limited Overview Sydney based investment boutique established in 2006, specialising in the For personal use only management of global equity and infrastructure strategies. As at 30 June 2013: • $14.7 billion in funds under management. • 22 investment professionals and 58 tot
Slide 3: Results Summary
Results Summary For personal use only 30 June 30 June % 2013 2012 Change Revenue $120.9m $35.8m 238% Expenses $25.9m $16.7m 55% Profit after tax $66.6m $13.7m 386% Underlying Profit After Tax4 $48.5m $13.7m 254% Key Statistics 30 June 30 June % 2013 2012 Change Earnings per share (EPS)1 40.0c 8.5c 3
Slide 4: MFG Capital Structure
MFG Capital Structure For personal use only 30 June 2013 million Ordinary Shares 152.783 2016 Options1 7.771 Class B Shares2,3 10.228 Total potential issued capital 170.782 1 MFG 2016 options have an exercise price of $2.6411 and expire on 30 June 2016. 2 Class B shares are held by H.M. Douglass and
Slide 5: Funds Management Business
Funds Management Business $ million 30 June 2013 30 June 2012 % change For personal use only Revenue Management fees 56.0 22.0 155% Performance fees 28.5 9.1 213% 1 Consulting fees 1.2 1.2 0% Interest/other income 0.3 0.4 (25)% 86.0 32.7 163% Expenses Employee expense 17.4 11.4 53% 2 US Marketing/co
Slide 6: Funds Management Business Geographical Breakdown
Funds Management Business at 30 June 2013 For personal use only Geographical Management & Performance Fee Revenue Expense Breakdown Breakdown North UK America 6% Other 9% Expense 25% US marketing/ consulting fee expense 6% Employee expense Australia 69% 85% 6
Slide 7: Employee Summary
Employee Summary For personal use only 31 July 2013 30 June 2013 30 June 2012 30 June 2011 Investment - Professional 22 22 14 12 - Administration 2 2 2 1 24 24 16 13 Distribution - Professional 14 14 12 10 - Administration 2 1 1 1 16 15 13 11 Business Support - Professional 19 17 13 6 - Administrati
Slide 8: Employee and Expense Outlook
Employee and Expense Outlook For personal use only We expect that the number of employees will increase modestly (currently 61) in 2013/14 We expect total employee expenses will increase by approximately 40% in 2013/14 US marketing costs to increase with North American funds under management and net
Slide 9: Funds Under Management Summary
Funds Under Management Summary 31 July 2013 30 June 2013 30 June 2012 30 June 2011 For personal use only $ million Retail 4,962 4,542 1,750 1,082 Institutional - Australia/NZ 2,589 2,424 1,924 1,674 - North America 3,085 2,891 306 - - Rest of World 5,346 4,838 26 - 11,020 10,153 2,256 1,674 Total FU
Slide 10: Retail Business
Retail Business For personal use only As at 30 June 2013 Retail FUM $4.5 billion. Total Net Retail Inflows for the 12 months to 30 June 2013 were $1.8 billion. Magellan Global Fund – Key representation • Platforms: BT Wrap, Macquarie Wrap, Colonial First State First Choice, Colonial First State Firs
Slide 11: Retail Investment Performance
Retail Investment Performance at 30 June 2013 For personal use only 3 Years 5 Years 5 Years 1 Year p.a. p.a. cumul. Magellan Global Fund 39.7% 19.2% 15.6% 106.5% MSCI World NTR Index ($A) 32.8% 10.7% 3.7% 19.8% Excess 6.9% 8.5% 11.9% 86.7% Magellan Infrastructure Fund 17.7% 19.2% 9.3% 56.0% UBS Dev
Slide 12: Global Equity Peer Comparison
Global Equity Peer Comparison at 30 June 2013 For personal use only 1 Year 3 Years (% p.a.) 5 Years (% p.a.) Magellan Global 39.7% 19.2% 15.6% Platinum International Brands 33.1% 11.8% 15.4% IFP Global Franchise Fund 30.6% 16.4% 12.7% Platinum International 37.3% 6.0% 9.5% MFS Global Equity Trust 39
Slide 13: Retail Net Inflows – Global Equity
Retail Net Inflows – Global Equity For personal use only Magellan Global Fund – Monthly Net Inflows and FUM 250 4,500 $M $M 4,000 200 3,500 3,000 150 2,500 2,000 100 1,500 50 1,000 500 - - Magellan Global Fund & CFS Flows - LHS Magellan Global Fund & CFS FUM - RHS •FUM & Flows includes Colonial Firs
Slide 14: Magellan High Conviction Fund
Magellan High Conviction Fund For personal use only Unconstrained, highly concentrated, high quality global equity strategy Leverages Magellan’s deep global equities/macroeconomic research and risk management Focused on ‘best investment’ ideas (8 to 12 stocks) Portfolio managed by Hamish Douglass Fe
Slide 15: Institutional Business
Institutional Business For personal use only As at 30 June 2013 total institutional FUM $10.2 billion • Number of institutional clients 38 • Global equities $7.8 billion • Infrastructure $2.4 billion Net inflows of $6.2 billion for the last 12 months. Australia/New Zealand: • 25 Institutional client
Slide 16: Institutional Business (continued)
Institutional Business (continued) For personal use only UK: • February 2013 – St. James’s Place initial funding of approximately $3 billion ($3.7 billion at 30 June 2013). • May 2012 - a UK insurance company (in partnership with FTSE and Magellan) launched our Core Infrastructure strategy. FUM as a
Slide 17: Fee Summary
Fee Summary For personal use only Base Fee pa Performance Fee Magellan Global Fund 1.35% Yes Magellan Global Fund (Hedged) 1.35% Yes Magellan Infrastructure Fund 1.06% Yes Magellan Infrastructure Fund (Unhedged) 1.06% Yes Magellan Core Infrastructure Fund 0.60% No Magellan High Conviction Fund 1.50%
Slide 18: Principal Investments
Principal Investments at 30 June 2013 For personal use only Investment $ million Cash1 24.3 Fixed Term Deposits 9.7 Magellan Unlisted Funds 73.1 Listed shares 21.6 Listed subordinated bank notes 4.3 Other 2.8 Total 135.8 Deferred tax liability (7.9) Net principal investments 127.9 Net principal inve
Slide 19: Offshore Banking Unit
Offshore Banking Unit For personal use only On 31 July 2013, Magellan Asset Management Limited was declared an Offshore Banking Unit (OBU). Under the current legislation, assessable offshore banking (OB) income, net of costs, will be subject to a concessional tax rate of 10%. Revenues earned from no
Slide 20: CEO Remuneration (from July 2013)
CEO Remuneration (from 1 July 2013) For personal use only Hamish Douglass CEO and Managing Director Fixed Compensation $1,250,000 Investment Restriction Payment $500,000 (15 July 2017) Short Term Incentive - Incentive Up to 1 times fixed compensation - Key Criteria (Global Equity Strategy) Ranking i
Slide 21: Board update
Board update For personal use only Chris Mackay to step down as Executive Chairman effective 30 September 2013 Chris Mackay to become Special Adviser to MFG Chris to become Managing Director of Magellan Flagship Fund Limited (MFF) Dr Brett Cairns to become Non-Executive Chairman effective 30 Septemb
Slide 22: Important Information
Important Information For personal use only This presentation has been prepared by Magellan Financial Group Limited (‘MFG’). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accur
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