Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — FY2012 Earnings Presentation
16 slides from Magellan Financial's earnings presentation, Aug 28, 2012
Slide 1: Investor Briefing
For personal use only Magellan Financial Group Limited Investor Briefing Hamish Douglass Chief Executive Officer Tuesday, 28 August 2012
Slide 2: Magellan Financial Group Limited Overview
Magellan Financial Group Limited Overview For personal use only • Sydney based investment boutique established in 2006, specialising in the management of global equity and infrastructure strategies. • As at 30 June 2012: • $4.0 billion in funds under management. • 14 Investment Professionals and 44
Slide 3: Results Summary
Results Summary 30 June 30 June % For personal use only 2011 2012 Change Revenue $18.3m $35.8m 96% Total operating $10.2m $16.7m 64% expenses Net profit after tax $5.8m $13.7m 136% Key Statistics 30 June 30 June % 2011 2012 Change Earnings per share1 3.7c 8.5c 130% Dividend per share 1.5c 4.5c 200%
Slide 4: MFG Capital Structure
MFG Capital Structure For personal use only 30 June 2012 (m) Ordinary Shares 152.558 2016 Options1 7.882 Class B Shares2 9.154 Total potential issued capital 169.594 1 MFG 2016 options have an exercise price of $3.00 and expire on 30 June 2016. 2 Class B shares are held by H.M. Douglass and will con
Slide 5: Funds Management Business
Funds Management Business 30 June 30 June $’000 % change For personal use only 2011 2012 Revenue Management fees 13,631 31,042 128% Consulting fees* 1,266 1,218 -4% Interest/other income 311 400 29% 15,208 32,660 115% Expenses Employee expense 6,972 11,378 63% Other expense 2,845 4,983 75% 9,817 16,
Slide 6: Employee Summary
Employee Summary 30 June 2010 30 June 2011 30 June 2012 17 August 2012 For personal use only Investment - Professional 10 12 14 17 - Administration 1 1 2 2 11 13 16 19 Distribution - Professional 5 10 12 12 - Administration 1 1 1 1 6 11 13 13 Business Support - Professional 6 6 13 13 - Administratio
Slide 7: Funds Under Management Summary
Funds Under Management Summary 30 June 2010 30 June 2011 30 June 2012 17 August 2012 For personal use only $ million Retail 610.7 1,081.9 1,749.6 1,922.5 Institutional - Active 197.6 178.3 786.9 841.9 - Enhanced beta 338.7 1,496.1 1,469.2 1,371.7 536.3 1,674.4 2,256.1 2,213.6 Total FUM 1,147.0 2,756
Slide 8: Retail Business
Retail Business • As at 30 June 2012 Total Retail FUM $1.7 billion. For personal use only • Total Net Retail Inflows for the 12 months to 30 June 2012 was $672.8 million. • Magellan Global Fund – Key representation • Platforms: BT Wrap, Macquarie Wrap, Colonial First State First Choice, Colonial Fir
Slide 9: Retail Business (continued): Investment Performance
Retail Business (continued) For personal use only Investment Performance as at 30 June 2012 3 Years 5 Years 5 Years 1 Year p.a. p.a. cumul. Magellan Global Fund 18.2% 11.4% 4.1% 22.4% MSCI World NTR Index ($A) -0.8% 2.5% -6.6% -28.8% Excess 19.0% 8.9% 10.7% 51.2% Magellan Infrastructure Fund 7.6% 18
Slide 10: Retail Business (continued): Peer Comparison
Retail Business (continued) Peer Comparison as at 30 June 2012 For personal use only 1 Year 3 Years p.a. 5 Years p.a. MSCI World NTR Index ($A) -0.8% 2.5% -6.6% Magellan Global 18.2% 11.4% 4.1% Platinum International Brands -5.3% 11.5% 4.1% IFP Global Franchise Fund 11.3% 10.9% 1.2% Platinum Interna
Slide 11: Magellan Global Fund – Monthly Net Inflows and FUM
Retail Business (continued) Magellan Global Fund – Monthly Net Inflows and FUM For personal use only 100 1,600 90 1,400 80 1,200 70 1,000 60 50 800 40 600 30 400 20 200 10 0 0 30-Jun-09 30-Jun-10 30-Jun-11 30-Jun-12 Magellan Global Fund Flows - LHS Magellan Global Fund FUM - RHS * FUM & Flows includ
Slide 12: Institutional Business
Institutional Business For personal use only • As at 30 June 2012 total institutional FUM $ 2.3 billion. • Institutional gross inflows of $417.6 million and net inflows of $170.4 million for the 12 months to 30 June 2012. • Australian business is strong with 23 Institutional clients and FUM of $1.9
Slide 13: Fee Summary
Fee Summary Base Fee pa Performance Fee For personal use only Magellan Global Fund 1.35% Yes Magellan Infrastructure Fund 1.06% Yes Magellan Core Infrastructure Fund 0.60% No Frontegra MFG Global Equity Fund1 0.80% No Frontegra MFG Infrastructure Fund1 0.70% No Magellan Flagship Fund 1.25% Yes Globa
Slide 14: Investment Assets
Investment Assets For personal use only Summary of Magellan’s investment assets at 30 June 2012 Investment $ million Cash 1.1 Fixed Term Deposits 30.6 Magellan Flagship Fund 42.2 Magellan Unlisted Funds 52.6 Listed shares 9.1 Other 3.7 Total 139.3 13
Slide 15: Executive Director Remuneration
Executive Director Remuneration For personal use only Hamish Douglass CEO and Managing Director Salary $400,000 Investment Restriction Payment $500,000 (15 July 2017) Bonus 1 - Maximum 200% of salary - Key Criteria MFG Group Performance (50% weighting) Global Equity Performance (40% weighting) Other
Slide 16: 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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