Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — H1 2021 Earnings Presentation
24 slides from Magellan Financial's earnings presentation, Feb 11, 2021
Slide 1: Magellan Financial Group Limited Interim Results
Magellan Financial Group Limited Interim Results For personal use only For the half year ended 31 December 2020
Slide 2: Introduction: Interim Highlights
Introduction Interim Highlights1 For personal use only • Average funds under management up 9% to $100.9 billion • Management and services fees revenue up 8% to $311.4 million • Profit before tax and performance fees of the Funds Management business up 8% to $256.2 million • Net profit after tax up 3
Slide 3: 1H21 Financial Results
For personal use only 1H21 Financial Results Kirsten Morton, Chief Financial Officer Magellan| 3
Slide 4: Magellan Financial Group Interim Results
Magellan Financial Group Interim Results $ million 31 Dec 2020 31 Dec 2019 % change For personal use only Management and services fees 311.4 288.2 8% Performance fees 12.4 41.7 (70%) Share of after tax results of equity accounted investments (6.1) - n/m Other revenue and income 9.4 7.1 31% Adjusted
Slide 5: Tax and Dividends
Tax and Dividends For personal use only • Effective tax rate for the six months to 31 December 2020 is 22.2% (Offshore Banking Unit) • Dividends: – Interim dividend of 97.1 cents per share (75% franked) – Pay dividends promptly – 25 February 2021 – Dividend policy1 : o Interim and Final dividends ba
Slide 6: Expenses
Expenses For personal use only • Costs associated with strategic initiatives considered as outside day-to-day operating expenses – Excluded from Funds Management business – Excluded from dividend payout • Cost to income ratio (excluding performance fees) of 16.8% during the period – Key driver of pr
Slide 7: Business Overview
For personal use only Business Overview 1. Funds Management Business 2. Business Resilience and Diversification Update Brett Cairns, Chief Executive Officer Magellan| 7
Slide 8: Funds Management Business
Funds Management Business For personal use only $ million 31 Dec 2020 31 Dec 2019 % change Revenue Management fees 309.4 285.9 8% Performance fees 12.4 41.7 (70%) Services fees 2.0 2.4 (15%) Interest and other revenue (3.6) 4.0 (190%) 320.2 333.9 (4%) Expenses Employee expense 34.2 36.2 (5%) Other e
Slide 9: 1H21 Net Flows
1H21 Net Flows Retail Net Inflows1 For personal use only Institutional Net Inflows 2,500 3,000 $ Millions $ Millions $2,335m $2,397m 2,500 2,000 2,000 1,500 $1,218m $1,405m 1,500 1,000 1,000 500 500 0 0 1H20 1H21 1H20 1H21 Total net inflows for the 6 months ended 31 December 2020: $3.7 billion 1. In
Slide 10: Funds Under Management
Funds Under Management As at 31 December 2020 ($ billion) For personal use only Strategy 30 June 2020 Net Inflows Investment Performance 31 December 20201 Global Equities $74.3 $1.7 $0.0 $75.1 Global Listed Infrastructure $15.9 $2.1 $0.3 $18.2 Australian Equities $7.0 -$0.1 $1.1 $8.0 $97.2 $3.7 $1.3
Slide 11: Business Overview
For personal use only Business Overview 1. Funds Management Business 2. Business Resilience and Diversification Update Brett Cairns, Chief Executive Officer Magellan| 11
Slide 12: Restructure of Global Equities Retail Funds
Restructure of Global Equities Retail Funds For personal use only • Restructure of three Global Equities retail funds into a single trust (Magellan Global Fund) completed in December 2020 • Magellan Global Fund now has two unit classes: – Closed Class Units quoted on ASX under the ASX Listing Rules
Slide 13: Restructure Partnership Benefits
Restructure Partnership Benefits • Following the successful restructure Magellan has now launched both the Partnership Offer and For personal use only separate Bonus MGF Option Issue: – Partnership Offer: $1-for-$4 offer to all Magellan Global Fund unitholders to subscribe for Closed Class Units and
Slide 14: Recent Fund Initiatives
Recent Fund Initiatives For personal use only • MFG Core International Fund (CXA: MCSG / APIR: MGE3851AU), MFG Core ESG Fund (CXA: MCSE / APIR: MGE8722AU) and MFG Core Infrastructure MFG Core Series Fund (CXA: MCSI / APIR: MGE9182AU) now available to retail investors through the Chi-X securities exc
Slide 15: Principal Investments
Principal Investments For personal use only • We view investments in our Principal Investments portfolio as either: – Internal investments: investments in our funds that provide alignment with our clients and allow for seeding of new strategies – External investments: investments outside Magellan’s
Slide 16: Principal Investments (cont.)
Principal Investments (cont.) External Investments Criteria For personal use only High quality management teams 1 • No operational involvement by Magellan, oversight via non-executive director representation • No distraction from our Funds Management business 2 High quality companies with meaningful
Slide 17: Barrenjoey investment and business update
For personal use only Magellan • $156 million investment for 40% non-dilutive economic stake (5% voting) investment • Welcomed David Gonski as Independent Chairman • Established many of the key foundations and on track to complete those that remain • Employs ~150, assembled from ~30 different instit
Slide 18: FinClear investment and business update
For personal use only • $20 million investment for ~16% (fully diluted) shareholding Magellan • Relationship to explore initiatives to improve access and reduce friction investment from the investment process for investors • Established in 2015 and now employs over 60 employees across offices in Syd
Slide 19: About GYG
ABOUT GYG For personal use only • Guzman y Gomez or “GYG” is Australia's fastest growing fast food business, serving clean, authentic, fresh and made to order Mexican food. • Since opening its first restaurant in Newtown, Sydney in 2006, GYG has expanded its footprint to 148 restaurants across Austr
Slide 20: Global Snapshot
GLOBAL SNAPSHOT For personal use only $410m 39% $387m 27% annualised global sales1 Australian sales growth annualised Australian sales1 Australian like-for-like growth FY21 to date FY21 year to date2 >70% 148 450+ 3.3m of restaurants exceeding restaurants globally customised orders per hour social r
Slide 21: Principal Investments
Principal Investments For personal use only Principal Investment portfolio: Investment Returns: Investment ($ million) 31 Dec 2020 30 June 2020 Time Period Return Internal investments Cash 0.7 1.4 1 Year to 31 December 2020 -1.2% Investments in: Magellan Funds1 387.3 388.3 3 Years to 31 December 202
Slide 22: Q&A
For personal use only Q&A Hamish Douglass, Chairman Brett Cairns, Chief Executive Officer Kirsten Morton, Chief Financial Officer Magellan| 22
Slide 23: Important Information
Important Information This presentation has been prepared by Magellan Financial Group Limited ACN 108 437 592 (‘Magellan’). This presentation contains summary information about Magellan and its related bodies corporate and is current as at 11 February 2021. While the information in this presentation
Slide 24: www.magellangroup.com.au
For personal use only www.magellangroup.com.au Phone: +61 2 9235 4888
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