Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — FY2014 Earnings Presentation
20 slides from Magellan Financial's earnings presentation, Aug 14, 2014
Slide 1: 2014 Full Year Results Briefing ASX cover letter
For personal use only 14 August 2014 ASX Limited ASX Market Announcements Office Exchange Centre 20 Bridge Street SYDNEY NSW 2000 MAGELLAN FINANCIAL GROUP LIMITED 2014 FULL YEAR RESULTS BRIEFING Attached is a copy of the presentation for the Magellan Financial Group Limited (MFG) 2014 Final Results
Slide 2: Magellan Financial Group Limited 2014 Final Results
For personal use only Magellan Financial Group Limited 2014 Final Results Hamish Douglass | Chief Executive Officer | 15th August 2014
Slide 3: Magellan Financial Group Overview
Magellan Financial Group Overview For personal use only [2] • For the year ending 30 June 2014: – Net profit after tax $82.9 million, 71% increase1 – EPS of 48.9 cents per share, 67% increase2 – Dividend (interim & final) of 38.3 cents per share, 78% increase3 • As at 30 June 2014: – Strong balance
Slide 4: Magellan Financial Group Overview (Continued)
Magellan Financial Group Overview [3] Continued For personal use only • Two business activities – Magellan Asset Management (Funds Management Business) – Principal Investments • Continuing dividend policy 75%-80% of underlying profit of funds management segment1 • Final dividend payment date brought
Slide 5: Funds Management Business
Funds Management Business For personal use only [4] $ million 30 June 2014 30 June 2013 % change Revenue Management fees 132.6 56.0 137% Performance fees 2.1 28.5 (93%) Service fees 3.9 - n/a 1 Consulting fees - 1.2 n/a Interest/other income 0.5 1.1 (53%) 139.1 86.8 60% Expenses Employee expense 23.
Slide 6: Funds Under Management Summary
Funds Under Management Summary For personal use only [5] 31 July 2014 30 June 2014 30 June 2013 30 June 2012 $ million Retail 6,629 6,693 4,542 1,750 Institutional - Australia/NZ 3,006 2,889 2,424 1,924 - North America 4,915 4,690 2,891 306 - Rest of World 10,233 9,241 4,838 26 18,154 16,820 10,153
Slide 7: Funds Under Management Capacity
Funds Under Management Capacity For personal use only [6] • Current theoretical capacity of the Global Equity and Infrastructure strategies is US$50 billion1 – Global Equities US$40 billion – Infrastructure US$10 billion • Theoretical capacity is not static and should be approximately indexed to cha
Slide 8: Employee Summary
Employee Summary For personal use only [7] 30 June 2014 30 June 2013 30 June 2012 Investment Professional 24 22 14 Administration 2 2 2 26 24 16 Distribution Professional 15 14 12 Administration 3 1 1 18 15 13 Business Support & Control Professional 22 17 13 Administration 3 2 2 25 19 15 Total 69 58
Slide 9: Retail Business
Retail Business [8] FUM and Net Inflows For personal use only • Total Retail FUM is $6.7 billion at 30 June 2014 (30 June 2013: $4.5 billion) • Total Net Retail Inflows for the year to 30 June 2014: $2.1 billion (year to 30 June 2013 was $1.8 billion) • Average Monthly Retail Net Inflows: Magellan G
Slide 10: Retail Business: New Funds Update
Retail Business [9] New Funds Update For personal use only • Three new funds launched for Australian and New Zealand Investors on 1 July 2013 – Magellan Global Fund (Hedged) – Magellan Infrastructure Fund (Unhedged) and – Magellan High Conviction Fund. • Magellan High Conviction Fund – Unconstrained
Slide 11: Retail Business: Investment Performance
Retail Business [10] Investment Performance for the period to 30 June 2014 For personal use only Since 1 Year 3 Years 5 Years Inception (%) (% p.a.) (% p.a.) (% p.a.) Magellan Global Fund ($A) 11.7 22.7 16.6 9.7 MSCI World NTR Index ($A) 20.3 16.6 11.5 1.9 MSCI World Minimum Volatility NTR Index ($A
Slide 12: Retail Business: Investment Performance Observations
Retail Business [11] Investment Performance Observations For personal use only Observations of the Magellan Global Fund performance, net inflows, adviser support: • Near top of peer group over 3 and 5 years • Designed as a quality / low volatility product - lower volatility investments have substant
Slide 13: Global Equity Peer Comparison
Global Equity Peer Comparison [12] Investment Performance for the period to 30 June 2014 in USD For personal use only 1 year (%) 3 years (% p.a.) 5 years (% p.a.) Magellan Global Equity 16.8 19.7 22.2 Artisan Global Value 25.2 18.7 21.1 Independent Franchise Partners Global Equity 21.2 15.8 20.8 Ced
Slide 14: Distribution Opportunities
Distribution Opportunities For personal use only [13] Two new distribution channels: • Bank/AMP aligned advice markets – Substantial progress over the last 3-6 months – Expect to gain traction in these channels over the coming year • Self directed self managed superannuation – Working on an ASX list
Slide 15: Institutional Business
Institutional Business For personal use only [14] • Total institutional FUM is $16.8 billion at 30 June 2014 (30 June 2013:$10.1 billion) – Global equities $13.2 billion – Infrastructure $3.6 billion • More than 80 institutional clients1 at 30 June 2014 • Net inflows for the year ended 30 June 2014
Slide 16: Institutional Business (Continued)
Institutional Business [15] Continued For personal use only • United Kingdom: – FUM is $7.9 billion at 30 June 2014 (30 June 2013: $4.8 billion) – Net inflows of $2.5 billion for the year to 30 June 2014 – St. James’s Place continues to grow, $4.8 billion at 30 June 2014 (30 June 2013: $3.7 billion)
Slide 17: Regular Monthly Institutional Net Inflows - Global Equity
Institutional Business [16] Regular Monthly Institutional Net Inflows - Global Equity1 For personal use only 300 Average Monthly Net Inflow: $162 million - last 12 months 250 200 150 100 50 - Institutional Monthly Flows 1 Separate accounts with regular monthly inflows which Includes St James’s Place
Slide 18: Principal Investments
Principal Investments For personal use only [17] • Principal Investments include investments in Magellan Funds, listed shares, a small number of unlisted investments and surplus cash after allowing for the Group’s working capital requirements. • Board set a pre-tax hurdle 10% p.a. (over business cyc
Slide 19: Principal Investments (continued)
Principal Investments (continued) For personal use only [18] Investment ($ million) 30 June 2014 30 June 2013 Cash 0.3 0.4 Magellan Unlisted Funds1 115.5 73.1 Listed shares 10.1 21.6 Listed subordinated bank notes - 4.3 Other2 3.5 2.8 Total 129.4 102.2 Deferred tax liability3 (9.7) (7.9) Payables –
Slide 20: Important Information
Important Information For personal use only [19] 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
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