Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — H1 FY2015 Earnings Presentation
19 slides from Magellan Financial's earnings presentation, Feb 20, 2015
Slide 1: Magellan Financial Group 2015 Interim Results Briefing
For personal use only 20 February 2015 ASX Limited ASX Market Announcements Office Exchange Centre 20 Bridge Street SYDNEY NSW 2000 MAGELLAN FINANCIAL GROUP LIMITED 2015 INTERIM RESULTS BRIEFING Attached is a copy of the presentation for the Magellan Financial Group Limited (MFG) 2015 Interim Result
Slide 2: Interim Results for the half year ended 31 December 2014
For personal use only Magellan Financial Group Limited Interim Results For the half year ended 31 December 2014 Hamish Douglass | CEO & Chief Investment Officer | 20th February 2015
Slide 3: Magellan Financial Group Overview
Magellan Financial Group Overview [2] • For the half year ended 31 December 2014: For personal use only – Net profit after tax $77.4 million, 115% increase1 – EPS (diluted) of 45.3 cents per share, 113% increase1 – Dividend (interim) of 37.1 cents per share fully franked, 125% increase1 • As at 31 D
Slide 4: Magellan Financial Group Overview cont.
Magellan Financial Group Overview cont. [3] • 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 – 9 March 2015 •
Slide 5: Funds Management Business
Funds Management Business [4] $ million 31 Dec 2014 31 Dec 2013 % change Revenue For personal use only Management fees 89.6 59.4 51% Performance fees 32.6 1.9 1623% Service fees 3.4 1.4 150% Interest/other income 0.6 0.4 24% 126.3 63.1 100% Expenses Employee expense 14.7 11.8 25% 1 US Marketing/cons
Slide 6: Funds Under Management Summary
Funds Under Management Summary [5] 31 Jan 2015 31 Dec 2014 30 June 2014 30 June 2013 $ million For personal use only Retail 8,649 8,354 6,693 4,542 Institutional - Australia/NZ 3,728 3,652 2,889 2,424 - North America 7,692 6,777 4,690 2,891 - Rest of World 13,155 12,842 9,241 4,838 24,575 23,271 16,
Slide 7: Well-balanced business
Well-balanced business [6] For personal use only Funds Under Management Base Fees 29% 45% 55% 71% Retail FUM Institutional FUM Retail Fees Institutional Fees Notes 1. FUM split is as at 31 December 2014. 2. Base Fees are Management and Services fees for the 6 months to 31 December 2014 and excludes
Slide 8: Client Diversity
Client Diversity [7] 12.0% For personal use only % of Total Management & Service Fees 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Top 30 Institutional Clients Cumulative Top 5 10 20 30 % 19% 26% 33% 37% 1Base Fees are Management and
Slide 9: Employee Summary
Employee Summary [8] Staff 31-Dec-14 30-Jun-14 31-Dec-13 30-Jun-13 For personal use only Investment team Portfolio Managers/Analysts 29 22 21 20 Dealers 2 2 2 2 31 24 23 22 Governance & Advisory1 3 1 - - Distribution 18 15 14 14 Risk, Compliance & Company Secretarial2 3 3 2 1 Business Support & Cont
Slide 10: Retail Business
Retail Business [9] Funds Under Management and Net Inflows • Total Retail FUM is $8.4 billion at 31 December 2014 (30 June 2014: $5.9 billion) For personal use only • Total Net Retail Inflows for 6 months to 31 Dec 2014: $0.7 billion (6 months to 31 Dec 2013 was $1.2 billion) • Average Monthly Retai
Slide 11: Retail Business: Investment Performance
Retail Business [10] Investment Performance for the period to 31 December 2014 For personal use only Since 6 Months 1 Year 3 Years 5 Years Inception (%) (%) (% p.a.) (% p.a.) (% p.a.) Magellan Global Fund ($A) 18.1 14.5 26.3 17.8 11.5 MSCI World NTR Index ($A) 14.0 14.7 24.5 12.3 3.5 MSCI World Mini
Slide 12: Global Equity Peer Comparison
Global Equity Peer Comparison [11] Investment Performance for the period to 31 December 2014 in USD 1 year (%) 3 years (% p.a.) 5 years (% p.a.) For personal use only Magellan Global Equity 6.5 19.2 17.5 Artisan Global Value 6.2 19.7 15.7 Independent Franchise Partners Global Franchise 7.2 15.9 15.5
Slide 13: Distribution Opportunities
Distribution Opportunities [12] For personal use only Two new distribution channels: • Bank/AMP aligned advice markets – Entered into new relationships with BT/Westpac and AMP over past 6 months – Expect to gain traction in these channels over the coming year • Self managed superannuation – Working
Slide 14: Institutional Business
Institutional Business [13] • Total institutional FUM is $23.3 billion at 31 December 2014 For personal use only (30 June 2014:$16.8 billion) – Global equities $19.0 billion – Infrastructure $4.3 billion • More than 90 institutional clients1 at 31 December 2014 • Net inflows for 6 months to 31 Decem
Slide 15: Institutional Business cont.
Institutional Business cont. [14] • Australia/New Zealand For personal use only – FUM is $3.7 billion at 31 December 2014 (30 June 2014: $2.9 billion) • United States: – FUM is $5.9 billion at 31 December 2014 (30 June 2014: $4.0 billion) – Net inflows of $1.0 billion for 6 months to 31 December 201
Slide 16: Institutional Business: Monthly Net Inflows
Institutional Business [15] Regular Monthly Institutional Net Inflows - Global Equities1 For personal use only Average Monthly Net Inflow: $138 million - last 12 months $92 million - last 6 months 300 250 200 150 100 50 - -50 Institutional Monthly Flows 1Separate accounts with regular monthly inflow
Slide 17: Principal Investments
Principal Investments [16] For personal use only • Principal Investments include investments in Magellan Funds, listed shares, a small number of unlisted investments and surplus cash after allowing for the Group’s working capital requirements. • Board set a pre-tax hurdle 10% p.a. (over business cyc
Slide 18: Principal Investments cont.
Principal Investments cont. [17] For personal use only Investment ($ million) 31 Dec 2014 30 June 2014 Cash 1.4 0.3 Magellan Unlisted Funds1 136.2 115.2 Listed shares 11.0 10.1 Other2 0.5 3.7 Total 149.1 129.3 Deferred tax liability3 (16.6) (9.7) Payables – outstanding settlements - - Net principal
Slide 19: Important Information
Important Information [18] 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
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