Magellan Financial Group Ltd · ASX:MFG

Magellan Financial — FY2024 Earnings Presentation

31 slides from Magellan Financial's earnings presentation, Aug 15, 2024

  1. Slide 1: Magellan Financial Group Full Year Results Briefing

    Magellan Financial Group Full Year Results Briefing For the year ended 30 June 2024 Andrew Formica | Executive Chairman Sophia Rahmani | Managing Director, Magellan Asset Management Kirsten Morton | Chief Operating Officer & Chief Financial Officer

  2. Slide 2: Agenda

    Agenda 1. FY24 Overview Andrew Formica 3 2. Vinva Investment Management Andrew Formica 6 3. Funds Management Business (MAM) Sophia Rahmani 10 4. Group Financials Kirsten Morton 17 5. Business Update Andrew Formica 23 |2

  3. Slide 3: FY24 Overview

    FY24 Overview Andrew Formica | Executive Chairman

  4. Slide 4: FY24 Highlights

    FY24 Highlights 1 Stability restored with transitional leadership arrangements 2 Net flows stabilising; institutional inflows of $0.6bn in Q4 FY24 and further inflows in July 2024 3 Performance fees of $19.2m generated in the year, primarily from Global Equities strategy – highest since FY21 Employe

  5. Slide 5: FY24 Achievements

    FY24 Achievements Colleagues Clients Capabilities  Board renewal completed  Completed conversion of Magellan Global  Strategic Product Group established and Fund Closed Class (ASX: MGF) into meeting regularly  Transitional leadership structure Magellan Global Fund Open Class (ASX: implemented MG

  6. Slide 6: Strategic Partnership: Vinva Investment Management

    Strategic Partnership: Vinva Investment Management Andrew Formica | Executive Chairman

  7. Slide 7: Vinva Investment Management

    Vinva Investment Management About Vinva Investment Management (Vinva) Funds Under Management1 (A$bn)  Global investment management firm founded in Australia in 2010 A$4.3bn Australian Equities  Pioneer in systematic equity strategies, specialising in long-only and long- short strategies across Aus

  8. Slide 8: Vinva – Investment Performance

    Vinva – Investment Performance Australian Equity Long-Short – Style Neutral Alpha Consistency1,2 Months 1 yr Periods 3 yr Periods 5 yr Periods 10 yr Periods Consistency over rolling periods since inception Average active returns across rolling periods Source: Vinva Investment Management. [1] Returns

  9. Slide 9: Strategic Partnership

    Strategic Partnership Strategic Partnership Overview Strategic Rationale  Strategic partnership with Vinva Investment Management (“Vinva”)  Strategic partnership represents the coming together of two culturally  Magellan to distribute Vinva’s systematic equity products globally aligned businesses

  10. Slide 10: Funds Management Business (MAM)

    Funds Management Business (MAM) Sophia Rahmani | Managing Director, MAM

  11. Slide 11: Funds Under Management

    Funds Under Management Funds Under Management1,2 (FUM) (A$ billion)  Net outflows of ~$5.7 billion, ~$3.2bn from institutional channel Global Equities  Institutional FUM of ~$3.0 billion at 30 June $39.7bn  Investment returns added ~$2.8bn of FUM $38.4bn $3.3bn $36.6bn $4.5bn  Net outflows of ~$

  12. Slide 12: Quarterly Net Flows

    Quarterly Net Flows -  Quarterly retail net outflows continue to (0.5) (0.4) improve (0.6) (1.0) (0.9)  Q3 FY24 retail outflows Retail Flows (1.0) partly offset by exercise of (A$ billion) (1.5) (1.4) (1.4) (1.3) MGF Options prior to (1.7) (1.6) expiry (2.0) (1.9) FY24  Expect increased outflows

  13. Slide 13: Global Equities Strategy

    Global Equities Strategy Quarterly Flows (A$ million) Strategy Update  Appointed Arvid Streimann to newly created role, - Head of Global Equities (1,500) Flows (3,000)  Retail outflows slowing quarter on quarter (excl. exercise of MGF Options in Q3 FY24) (4,500)  Net outflows of ~$5.7 billion in

  14. Slide 14: Infrastructure Strategy

    Infrastructure Strategy Quarterly Flows (A$ million) Strategy Update 1,000  Two primary strategies, Select and Core, built on a strict definition of infrastructure 500  Stable team with 5 portfolio managers who have - worked together for the last 8 years (500) Flows (1,000) Retail Institutional 

  15. Slide 15: Airlie Funds Management

    Airlie Funds Management Quarterly Flows (A$ million) Strategy Update 200  High-quality team led by Matt Williams and Emma Retail Institutional Fisher, with growing following in the market 100 Flows -  Strong flows in retail products and continuing to build (100) momentum (200)  Positive client co

  16. Slide 16: Magellan's Platform Strength

    Magellan’s Platform Strength High Quality Team Institutional Grade Brand Strength Platform  High quality team across the  Culture of operational  Significant brand equity business excellence  Recognised for strength in  Collaborative, dedicated &  Efficient and scalable platform, investment ca

  17. Slide 17: Group Financials

    Group Financials Kirsten Morton | COO & CFO

  18. Slide 18: Financial Highlights

    Financial Highlights1 Group adjusted net profit after tax2 1 $177.9 million 2% $912.2 million Funds management business expenses 2 $102.4 million 16% Net Tangible Assets ($5.05 per share) Performance Fees 3 $19.2 million 67% No debt Total liabilities of $69.7 million down 71% Share of after tax prof

  19. Slide 19: Reported Earnings

    Reported Earnings $ million 30 Jun 2024 30 Jun 2023 % change Management and services fees 257.9 330.2 (22%) • Management and services fees decreased by 22%, Performance fees 19.2 11.5 67% reflecting the 25% reduction in average FUM Other revenue and income 68.5 37.6 82% • Performance fees of $19.2 m

  20. Slide 20: Funds Management Business – MAM

    Funds Management Business – MAM $ million 30 Jun 2024 30 Jun 2023 % change Revenue Management fees 256.7 327.6 (22%) • Funds Management segment represents the core business Performance fees 19.2 11.5 67% that drives profits and dividends Services fees 1.2 2.6 (54%) Other revenue and income 2.8 3.3 (

  21. Slide 21: Funds Management Business – MAM (cont.)

    Funds Management Business – MAM (cont.)  Cost to income ratio (excluding performance fees) of 39.3% during the period  FY24 Funds Management business operating expenses of $102.4 million, within previously provided guidance range of $97.5-102.5 million. FY24 funds management operating expenses inc

  22. Slide 22: Fund Investments

    Fund Investments Magellan has set a pre-tax hurdle of 10% p.a. over the business cycle for the Fund Investments portfolio FUND INVESTMENTS PORTFOLIO INVESTMENT RETURNS Investment ($ million) 30 June 2024 30 June 2023 Time Period (to 30 June 2024) Return Cash 0.2 0.4 1 year 18.1% Investments in: Mage

  23. Slide 23: Business Update

    Business Update Andrew Formica | Executive Chairman

  24. Slide 24: Our Business

    Our Business Magellan Asset Associates Distribution Management Businesses1 Australia & NZ Global Equities Distributes United States globally Infrastructure Rest of World Airlie Magellan is underpinned by our institutional grade platform [1] Vinva economic interest of 29.5%; Barrenjoey economic inter

  25. Slide 25: Distribution Update

    Distribution Update Domestic Distribution US Distribution Rest of World Distribution  Standout distribution platform servicing  US is a key growth market for Magellan  Highly regarded institutional distribution retail clients in Australia and New Zealand, given size, scale and existing US distrib

  26. Slide 26: Associates Business

    Associates Business  High quality, well regarded manager with  Profitable with FY24 NPAT of $34.7m  Diverse client base with $155 billion of significant capacity and strong performance following record revenues up over 40% underlying client assets  Approximately $22 billion of assets under  All

  27. Slide 27: Capital Management Position

    Capital Management Position  Strategic Capital & Stability Buffer has $854m $854m protected the business from recent challenges Associates $160m  Over time, anticipate a lower level of Associates $298m Stability Buffer will be required, as the (incl. Vinva) business becomes more resilient and $555

  28. Slide 28: FY25 Priorities & Summary

    FY25 Priorities & Summary FY25 Priorities Summary Colleagues  Strengthened governance with Board renewal — Implement and finalise Remuneration Framework  Well positioned for growth following stabilisation of — Targeted training and development of staff FUM flows  High quality team across the busi

  29. Slide 29: Q&A

    Q&A + ae

  30. Slide 30: Important Information

    Important Information This presentation has been prepared by Magellan Financial Group Ltd ACN 108 437 592 (‘Magellan’). This presentation contains summary information about Magellan and its related bodies corporate and is current as at 15 August 2024. While the information in this presentation has b

  31. Slide 31: www.magellangroup.com.au

    www.magellangroup.com.au Phone: +61 2 9235 4888

Magellan Financial Group — FY2024 Earnings Presentation on 6ix