Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — Shareholder Meeting (October 2015)
18 slides from Magellan Financial's shareholder meeting presentation, Oct 16, 2015
Slide 1: Magellan Financial Group Limited 2015 AGM Presentation
For personal use only Magellan Financial Group Limited 2015 AGM Presentation Hamish Douglass | CEO & Chief Investment Officer | 16 October 2015
Slide 2: Magellan Financial Group Overview
Magellan Financial Group Overview [2] • For the year ended 30 June 2015: For personal use only – Net profit after tax $174.3 million, 110% increase1 – EPS (diluted) of 101.8 cents per share, 108% increase1 – Dividends (interim & final) of 74.9 cents per share fully franked, 96% increase1 • As at 30
Slide 3: Magellan Financial Group Overview (cont.)
Magellan Financial Group Overview (cont.) [3] $ million 30 Jun 2015 30 Jun 2014 % change For personal use only Management, performance and services fees 254.3 138.6 83% Other revenue 30.6 9.5 222% Revenue 284.9 148.1 92% Expenses (54.6) (37.6) 45% Profit before tax expense 230.3 110.5 108% Tax expen
Slide 4: Magellan Financial Group Overview (cont.)
Magellan Financial Group Overview (cont.) [4] For personal use only • Two business activities – Magellan Asset Management (Funds Management Business) – Principal Investments • Offshore Banking Unit (OBU) – Assessable offshore banking income subject to a concessional tax rate of 10% (under current le
Slide 5: Funds Management Business
Funds Management Business [5] $ million 30 Jun 2015 30 Jun 2014 % change Revenue For personal use only Management fees 203.5 132.6 53% Performance fees 43.4 2.1 nm Services fees 7.9 3.9 100% Interest/other income 1.1 0.5 115% 255.9 139.1 84% Expenses Employee expense 31.2 23.6 32% 1 US Marketing/con
Slide 6: Funds Under Management Summary
Funds Under Management Summary [6] 30 September 2015 30 June 2015 30 June 2014 $ million For personal use only Retail 10,648 9,809 6,693 Institutional - Australia/NZ 3,534 3,871 2,889 - North America 9,443 8,462 4,690 - Rest of World 15,085 14,239 9,241 28,062 26,572 16,820 Total FUM 38,710 36,381 2
Slide 7: Scalable Business Model
Scalable Business Model [7] Funds Management Business For personal use only $M 300 90 % 200 60 100 30 - 0 2010 2011 2012 2013 2014 2015 Total Revenue - LHS Cost/Income (ex Perf Fees) - RHS
Slide 8: Well-balanced business
Well-balanced business [8] For personal use only Funds Under Management1 Base Fees2 27% 43% 57% 73% Retail Fees Institutional Fees Retail FUM Institutional FUM 1 FUM split is as at 30 June 2015. 2 Base Fees are Management and Services fees for the 12 months to 30 June 2015 and exclude Performance fe
Slide 9: Funds Management Revenue and Expense by Currency
Funds Management Revenue and Expense by Currency [9] • Majority of revenues are generated from USD investments For personal use only • Majority of operating expenses are incurred in AUD Funds Management Revenue Funds Management Expenses (excl. performance fees) $212 million Other, 5% GBP, 7% AUD, 7%
Slide 10: Institutional Client Diversity
Institutional Client Diversity [10] For personal use only 12.0% % of Total Management & Service Fees 1 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Top 30 Institutional Clients Cumulative Total Management and Services Fees 1 Top Inst
Slide 11: Employee Summary
Employee Summary [11] Staff 30-Sep-15 30-Jun-15 30-Jun-14 For personal use only Investment team Portfolio Managers/Analysts 33 29 22 Traders 3 3 2 36 32 24 Governance & Advisory1 4 4 1 Distribution 24 21 15 Risk, Compliance & Company Secretarial 4 5 3 Business Support & Control 24 23 18 Administrati
Slide 12: Retail Business – well positioned to grow
Retail Business – well positioned to grow [12] For personal use only Well positioned to benefit from compulsory superannuation trends: • Independent Financial Advice firms – Relationships with over 500 firms1 • Bank/AMP aligned advice markets – Strong relationships and representation with 4 of the t
Slide 13: Retail Business – well positioned to grow (cont.)
Retail Business – well positioned to grow (cont.) [13] For personal use only • ASX quoted funds – Magellan Global Equities Fund (MGE) launched in March 2015 – Magellan Global Equities Fund (Currency Hedged) (MHG) launched in August 2015 • Strong Adviser Support – Total advisers using Magellan Global
Slide 14: Retail Business
Retail Business [14] Funds Under Management and Net Inflows • Total Retail FUM up by 47% to $9.8 billion at 30 June 2015 (30 June 2014: $6.7 billion) For personal use only • Total Net Retail Inflows for the year to 30 June 2015: $1.4 billion (year to 30 June 2014: $2.1 billion) • Total Retail FUM is
Slide 15: Institutional Business
Institutional Business [15] • Total institutional FUM up 58% to $26.6 billion at 30 June 2015 (30 June 2014: $16.8 billion) For personal use only – Global equities $21.9 billion (82%) – Infrastructure $4.7 billion (18%) • More than 100 institutional clients1 at 30 June 2015 • Net inflows for the yea
Slide 16: Update on Investment Performance
Update on Investment Performance [16] For the periods to 30 September 2015 For personal use only Since 1 Year 3 Years 5 Years Inception (%) (% p.a.) (% p.a.) (% p.a.)1 Magellan Global Fund ($A) 27.5 26.0 21.2 12.2 MSCI World NTR Index ($A) 18.3 23.8 15.5 4.3 Magellan Infrastructure Fund ($A) 14.8 16
Slide 17: Update on Net Flows
Update on Net Flows [17] Quarterly Net Flows to 30 September 2015 For personal use only Retail Quarterly Net Flows Institutional Quarterly Net Flows 700 1,800 $M $M 1,595 596 1,600 600 1,400 1,342 500 1,200 431 1,004 1,000 400 854 353 355 800 304 300 600 200 400 200 100 0 0 -200 -94 Sep-14 Dec-14 Ma
Slide 18: Important Information
Important Information [18] This presentation has been prepared by Magellan Financial Group Limited (‘MFG’). For personal use only 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
Magellan Financial Group — Shareholder Meeting (October 2015) on 6ix