Slide 1: Magellan Financial Group Final Results
For personal use only Magellan Financial Group Limited Final Results For the year ended 30 June 2016 Hamish Douglass | CEO & Chief Investment Officer | 11th August 2016
Slide 2: Magellan Financial Group Final Results
Magellan Financial Group Final Results [2] For personal use only $ million 30 June 2016 30 June 2015 % change Management, performance and services fees 314.6 254.3 24% Other revenue 19.2 30.6 (37%) Revenue 333.8 284.9 17% Expenses (74.1) (54.6) 36% Profit before tax expense 259.7 230.3 13% Profit af
Slide 3: 2016 highlights
2016 highlights [3] • Deepening penetration of Global Equities and Global Listed Infrastructure strategies with For personal use only retail investors, advisers and brokers – $2.3 billion in net retail inflows and $12.0 billion in retail FUM o Global Equities: $2.0 billion of net retail inflows and
Slide 4: Magellan Financial Group Overview
Magellan Financial Group Overview [4] • Two business activities For personal use only – Magellan Asset Management (Funds Management Business) – Principal Investments • Continuing dividend policy 75%-80% of underlying profit of funds management segment1 • Pay dividends promptly – 26 August 2016 • Off
Slide 5: Funds Management Business
Funds Management Business [5] $ million 30 June 2016 30 June 2015 % change Revenue For personal use only Management fees 258.4 203.5 27% Performance fees 48.0 43.4 11% Services fees 8.2 7.9 5% Interest/other income 0.6 1.1 (45%) 315.3 255.9 23% Expenses Employee expense 42.0 31.2 35% 1 US Marketing/
Slide 6: Funds Management Business (cont.)
Funds Management Business (cont.) [6] Management and performance fees For personal use only Incremental change in management and performance fees +$4.6m $306.4m +$24.8m +$30.1m A$ million $246.9m +24% FY15 Retail management fees Institutional management Institutional performance FY16 fees fees • Inc
Slide 7: Funds Management Business (cont.) - Expense summary
Funds Management Business (cont.) [6] Expense summary For personal use only Incremental change in Funds Management expenses during the year +$0.4m +$1.5m $71.5m +$1.7m +$1.3m +$1.1m +$10.8m +$2.0m $52.6m A$ million +36% FY15 Employee Foreign and US marketing & Information Fund Occupancy Other expens
Slide 8: Employee Summary
Employee Summary [8] Staff 30 June 2016 30 June 2015 30 June 2014 For personal use only Investment team Portfolio Managers/Analysts 33 29 22 Traders 3 3 2 36 32 24 Governance & Advisory 4 4 1 Distribution1 30 21 15 Risk, Compliance & Company Secretarial 4 5 3 Business Support & Control1 20 23 18 Adm
Slide 9: Funds Under Management Summary
Funds Under Management Summary [9] 30 June 2016 30 June 2015 30 June 2014 $ million Retail 12,041 9,809 6,693 For personal use only Institutional - Australia/NZ 4,415 3,871 2,889 - North America 9,145 8,462 4,690 - Rest of World 14,894 14,239 9,241 28,454 26,572 16,820 Total FUM 40,495 36,381 23,513
Slide 10: Well-balanced business
Well-balanced business [10] For personal use only Funds Under Management1 Base Fees2 30% 43% 57% 70% Retail FUM Institutional FUM Retail Fees Institutional Fees Notes 1. FUM split is as at 30 June 2016. 2. Base Fees are Management and Services fees for the 12 months to 30 June 2016 and excludes Perf
Slide 11: Institutional Client Diversity
Institutional Client Diversity [11] For personal use only Cumulative Total Management and Services Fees 1 Top Institutional Clients 5 10 20 30 % 18 24 31 36 1. Management and Services fees for the 12 months to 30 June 2016 for separately managed accounts and institutional investors in local and offs
Slide 12: Retail Business – well positioned to grow
Retail Business – well positioned to grow [12] Well positioned to benefit from compulsory superannuation trends: For personal use only • Independent Financial Advice firms – Relationships with over 500 firms1 • Bank/AMP aligned advice markets – Strong relationships and representation with 4 of the t
Slide 13: Retail Business – well positioned to grow (cont.)
Retail Business – well positioned to grow (cont.) [13] For personal use only • ASX quoted funds – Magellan Global Equities Fund (MGE) launched in March 2015 – Magellan Global Equities Fund (Currency Hedged) (MHG) launched in August 2015 – Magellan Infrastructure Fund (Currency Hedged) (MICH) launche
Slide 14: Retail Business
Retail Business [14] Funds Under Management and Net Inflows For personal use only • Total Retail FUM is $12.0 billion at 30 June 2016 (30 June 2015: $9.8 billion) • Total Net Retail Inflows for 12 months to 30 June 2016: $2.3 billion (12 months to 30 June 2015 was $1.4 billion) • Average Monthly Ret
Slide 15: Institutional Business
Institutional Business [15] • Total institutional FUM is $28.4 billion at 30 June 2016 For personal use only (30 June 2015: $26.6 billion) – Global equities $22.8 billion – Global listed infrastructure $5.6 billion • More than 110 institutional clients1 at 30 June 2016 • Total net institutional infl
Slide 16: Institutional Business (cont.)
Institutional Business (cont.) [16] For personal use only FUM ($ billion) 30 June 2016 30 June 2015 % change Asia-Pacific 5.6 4.5 26% North America 9.1 8.4 8% United Kingdom 11.7 11.7 0% Ireland/ROW1 2.0 2.0 0% Total 28.4 26.6 7% 1 Includes the Irish UCITS and other Rest of World accounts
Slide 17: Investment Performance
Investment Performance [17] For the periods to 30 June 2016 For personal use only Since 1 Year 3 Years 5 Years Inception (%) (% p.a.) (% p.a.) (% p.a.)1 Magellan Global Fund ($A) (0.1) 13.1 19.0 10.6 MSCI World NTR Index ($A) 0.4 14.6 14.7 4.0 Magellan Infrastructure Fund ($A) 17.8 17.3 15.4 8.6 Glo
Slide 18: Principal Investments
Principal Investments [18] For personal use only • Principal Investments include investments in Magellan Funds, listed shares, a small number of unlisted investments and surplus cash after allowing for the Group’s working capital requirements. Investment ($ million) 30 June 2016 30 June 2015 Cash 2.
Slide 19: Principal Investments (cont.)
Principal Investments (cont.) [19] For personal use only • Board has set a pre-tax hurdle 10% p.a. (over business cycle) for the Principal Investments. Investment Returns: Time Period Return 1 Year to 30 June 2016 1.0% 3 Years to 30 June 2016 p.a. 13.9% 5 Years to 30 June 2016 p.a. 20.5% 1 July 2007
Slide 20: Important Information
Important Information [20] 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