Magellan Financial Group Ltd · ASX:MFG

Magellan Financial — H1 2014 Earnings Presentation

18 slides from Magellan Financial's earnings presentation, Feb 20, 2014

  1. Slide 1: 2014 Interim Results Presentation

    For personal use only Magellan Financial Group Limited 2014 Interim Results Presentation Hamish Douglass Chief Executive Officer 8:00am, 21 February 2014

  2. Slide 2: Magellan Financial Group Overview

    Magellan Financial Group Overview For personal use only  As at 31 December 2013: • $21.4 billion in funds under management ($14.7 billion at 30 June 2013). • 62 total staff (58 at 30 June 2013).  For the half year ending 31 December 2013: • Strong balance sheet with net assets of $182.0 million ($

  3. Slide 3: Magellan Financial Group Overview

    Magellan Financial Group Overview  Two business activities For personal use only • Magellan Asset Management (Funds Management Business) • Principal Investments  Dividend policy 75%-80% of underlying profit of funds management segment, subject to franking credits  Interim dividend brought forward

  4. Slide 4: Funds Management Business

    Funds Management Business $ million 31 Dec 2013 31 Dec 2012 % change Revenue For personal use only Management fees 59.4 19.2 210% Performance fees 1.9 5.8 -67% Service fees 1.4 - n.a. 1 Consulting fees - 0.6 n.a. Interest/other income 0.4 0.2 140% 63.1 25.8 145% Expenses Employee expense 11.8 8.1 47

  5. Slide 5: Funds Under Management Summary

    Funds Under Management Summary 31 Jan 2014 31 Dec 2013 30 June 2013 30 June 2012 For personal use only $ million Retail 5,902 5,917 4,542 1,750 Institutional - Australia/NZ 2,911 2,826 2,424 1,924 - North America 4,556 4,786 2,891 306 - Rest of World 7,876 7,841 4,838 26 15,343 15,453 10,153 2,256 T

  6. Slide 6: Retail Business

    Retail Business  Total Retail FUM is $5.9 billion at 31 December 2013 (30 June 2013: $4.5 billion) For personal use only  Total Net Retail Inflows for the 6 months to 31 Dec 2013: $1.2 billion (6 months to 31 Dec 2012 was $0.8 billion)  Average Retail Monthly Net Inflows: Magellan Global Fund1 To

  7. Slide 7: Retail Business

    Retail Business 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, highly concentrated

  8. Slide 8: Retail Business - Investment Performance

    Retail Business - Investment Performance Retail Investment Performance at 31 December 2013 For personal use only Since 3 Years 5 Years 1 Year Inception p.a. p.a. p.a. Magellan Global Fund 48.7% 24.5% 16.1% 11.0% MSCI World NTR Index($A) 47.0% 16.7% 9.4% 1.9% Excess 1.7% 7.8% 6.7% 9.1% Magellan Infra

  9. Slide 9: Retail Business - Global Equity Peer Comparison

    Retail Business - Global Equity Peer Comparison Global Equity Peer Comparison at 31 December 2013 For personal use only 1 Year 3 Years (% p.a.) 5 Years (% p.a.) Platinum International Brands 31.1% 14.6% 18.1% Magellan Global 48.7% 24.5% 16.1% IFP Global Franchise Fund 41.0% 21.3% 13.3% MFS Global Eq

  10. Slide 10: Distribution Opportunities – Institutionally aligned advice

    Distribution Opportunities – Institutionally aligned advice For personal use only  Magellan has a high penetration of the independent advice market  Independent advice represents: • 16% of the 16,000 active financial advisers in Australia • Approximately, $100 billion of funds under advice  Appro

  11. Slide 11: Distribution Opportunities – Direct SMSFs

    Distribution Opportunities – Direct SMSFs For personal use only As at 30 September 2013  Over $530 billion SMSF assets  Large proportion self directed  36% in Australian listed shares and trusts ($191 billion)  Unlisted and Managed funds represent 13.5% of SMSF assets ($72 billion)  High level

  12. Slide 12: Distribution Opportunities – SMSFs

    Distribution Opportunities – SMSFs SMSFs at 30 September 20131 For personal use only Other 5.9% ($31bn) Property 4 15.3% ($81bn) Australian Listed Shares & Listed Trusts 2 35.9% ($191bn) Overseas Shares 0.4% ($2bn) Cash & Term Deposits Unlisted Trusts & 29.0% ($154bn) Managed Investments3 13.5% ($72

  13. Slide 13: Institutional Business

    Institutional Business  Total institutional FUM is $15.5 billion at 31 December 2013 (30 June 2013:$10.1 billion) For personal use only • Global equities $12.0 billion • Infrastructure $3.5 billion  Net inflows for the 6 months ending 31 December 2013: was $3.5 billion  Australia/New Zealand: • F

  14. Slide 14: Institutional Business (continued)

    Institutional Business (continued) For personal use only  UK: • FUM is $7.4 billion at 31 December 2013 (30 June 2013: $4.8 billion). • Net inflows of $1.8 billion for the 6 months to 31 Dec 2013. • 1 new global equity mandate • St. James’s Place continues to grow, $4.6 billion at 31 December 2013

  15. Slide 15: Institutional Business (continued)

    Institutional Business (continued) Regular Monthly Institutional Net Inflows - Global Equity1 For personal use only 250 Average Monthly Net Inflow: $109 million - last 12 months 200 150 100 50 - Institutional Monthly Flows 1 Separate accounts with regular monthly inflows which Includes St James’s Pl

  16. Slide 16: Principal Investments

    Principal Investments For personal use only  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 cycle) f

  17. Slide 17: Principal Investments (continued)

    Principal Investments (continued) For personal use only Investment ($ million) 31 Dec 2013 30 June 2013 Cash 0.2 0.4 Magellan Unlisted Funds(A) 120.9 73.1 Listed shares 10.6 21.6 Listed subordinated bank notes 1.1 4.3 Other(B) 1.4 2.8 Total 134.2 102.2 Deferred tax liability(C) (11.7) (7.9) Payables

  18. Slide 18: Important Information

    Important Information 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 accur

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