Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — Shareholder Meeting (October 2013)
20 slides from Magellan Financial's shareholder meeting presentation, Oct 18, 2013
Slide 1: 2013 Annual General Meeting: Chairman's Address & CEO's Presentation
For personal use only 18 October 2013 ASX Market Announcements Australian Securities Exchange Limited Level 4, Exchange Centre 20 Bridge Street, Sydney NSW 2000 Dear Sir/Madam, Magellan Financial Group Limited (ASX: MFG) 2013 Annual General Meeting Chairman’s Address & CEO’s Presentation Magellan Fi
Slide 2: Important Notice
Important Notice Magellan Financial Group Limited (MFG) has prepared the information in this document. This document has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. This document is
Slide 3: Chairman's Address (continued)
Chris understood the importance of allowing Hamish’s unique skills to flourish in both the management of the Global Fund/Global Equities portfolios and the management of Magellan’s business. He saw this early on, acted upon it and For personal use only supported Hamish in numerous ways in his role a
Slide 4: Chairman's Address (continued)
real risks. Hamish, Chris and indeed the Board have a high respect for these risks and right from the start Magellan has tried very hard to build processes and a culture to reduce as much as possible our ability to trick ourselves. Hamish has developed the For personal use only team and approach wit
Slide 5: Chairman's Address: the future
that where we do assume such risks they are manageable and bounded. Even risks with small probabilities of occurrence should not be ignored. For personal use only Lastly I would like to say a few words on the future: We believe it is bright and that the journey has really only just begun. Our vision
Slide 6: Magellan Financial Group Limited 2013 – CEO presentation
For personal use only Magellan Financial Group Limited 2013 AGM Presentation Hamish Douglass Chief Executive Officer 18th October 2013
Slide 7: Magellan Financial Group Overview
Magellan Financial Group Overview For personal use only ¾ As at 30 September 2013: • $17.1 billion3 in funds under management ($4.0 billion 30/6/12). • 62 total staff (44 at 30/6/12). ¾ As at 30 June 2013: • Strong balance sheet with net assets of $153.0 million. Underlying profit after tax $48.5
Slide 8: Magellan Financial Group Overview
Magellan Financial Group Overview For personal use only ¾ Two business activities Magellan Asset Management (Funds Management Business) Principal Investments ¾ Dividend policy 75%-80% of underlying profit of funds management segment, subject to franking credits ¾ Theoretical capacity of our glob
Slide 9: 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 10: Funds Under Management Summary
Funds Under Management Summary 30 Sept 2013 30 June 2013 30 June 2012 For personal use only $ million Retail 4,731 4,542 1,750 Institutional - Australia/NZ 2,545 2,424 1,924 - North America 4,110 2,891 306 - Rest of World 5,722 4,838 26 12,377 10,153 2,256 Total FUM # 17,108 14,695 4,006 % Retail 28
Slide 11: Retail Business
Retail Business For personal use only ¾ As at 30 September 2013 is $4.7 billion (30 June 2012: $1.8 billion) ¾ Total Net Retail Inflows for the 12 months to 30 June 2013: was $1.8 billion (12 months to 30 June 2012: was $0.7 billion) ¾ Magellan Global Fund – Key representation • Platforms: BT Wrap,
Slide 12: Retail Net Inflows – Global Equity
Retail Net Inflows – Global Equity Magellan Global Fund – Monthly Net Inflows and FUM For personal use only 250 5,000 $M $M 4,500 200 4,000 3,500 150 3,000 2,500 100 2,000 1,500 50 1,000 500 - - Magellan Global Fund & CFS Flows - LHS Magellan Global Fund & CFS FUM - RHS •FUM & Flows includes Colonia
Slide 13: Retail Investment Performance
Retail Investment Performance at 30 September 2013 For personal use only 3 Years 5 Years 5 Years 1 Year p.a. p.a. cumul. Magellan Global Fund 34.4% 20.7% 11.6% 73.2% MSCI World NTR Index ($A) 33.7% 13.1% 4.2% 23.0% Excess 0.7% 7.6% 7.4% 50.2% Magellan Infrastructure Fund 15.2% 14.5% 10.0% 61.2% UBS
Slide 14: Global Equity Peer Comparison
Global Equity Peer Comparison at 30 September 2013 For personal use only 1 Year 3 Years (% p.a.) 5 Years (% p.a.) Platinum International Brands 33.8% 12.8% 15.4% Magellan Global 34.4% 20.7% 11.6% IFP Global Franchise Fund 28.9% 18.1% 10.6% Platinum International 40.2% 9.7% 9.2% MFS Global Equity Tru
Slide 15: Magellan High Conviction Fund
Magellan High Conviction Fund For personal use only ¾ Unconstrained, highly concentrated, high quality global equity strategy ¾ Leverages Magellan’s deep global equities/macroeconomic research and risk management ¾ Focused on ‘best investment’ ideas (8 to 12 stocks) ¾ Fees • Base Management fee 1.5%
Slide 16: Institutional Business
Institutional Business ¾ As at 30 September 2013 total institutional FUM is $12.4 billion1 (30 June 2012:$2.2 billion) For personal use only • Number of institutional clients 43 • Global equities $9.5 billion • Infrastructure $2.9 billion ¾ Net inflows of the last 12 months to 30 June 2013: was $6.2
Slide 17: Institutional Business (continued)
Institutional Business (continued) For personal use only ¾ UK: • February 2013 – St. James’s Place initial funding of approximately $3 billion ($3.9 billion at 30 September 2013). • May 2012 - a UK insurance company (in partnership with FTSE and Magellan) launched our Core Infrastructure strategy. F
Slide 18: Principal Investments at June 2013
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 ¾ On 31 July 2013, Magellan Asset Management Limited was declared an Offshore Banking Unit (OBU). ¾ Under the current legislation, assessable offshore banking (OB) income, net of costs, will be subject to a concessional tax rate of 10%. ¾ Revenues earned f
Slide 20: 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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