Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — Shareholder Meeting (October 2016)
18 slides from Magellan Financial's shareholder meeting presentation, Oct 13, 2016
Slide 1: Magellan Financial Group Limited 2016 AGM Presentation
For personal use only Magellan Financial Group Limited 2016 AGM Presentation Hamish Douglass | CEO & Chief Investment Officer | 13 October 2016
Slide 2: 10-year journey
Magellan Financial Group [2] 10-year journey $1,000 invested in 2007, worth ~$26,000 today, ~42% p.a.1 For personal use only 2006 • Sep-06: Establishment of Magellan and recapitalisation 2012 proposal • Nov-12: St James’s Place • Dec-06: Magellan Flagship Aug 2011 awards Magellan ~£2 billion Fund IP
Slide 3: Where we stand today
Magellan Financial Group [3] Where we stand today For personal use only • Sydney-based specialised, long-only global equities and global listed infrastructure fund manager • $42.3 billion in funds under management – Retail funds under management of $12.6 billion, with ~250,000 underlying unitholders
Slide 4: Four priorities for the future
Magellan Financial Group [4] Four priorities for the future For personal use only 1 Investment excellence and relentless focus on our clients Scaling Australian retail business 2 • Leveraging retail distribution and brand • Leveraging listed funds platform Three new related global equities products
Slide 5: 2016 results
Magellan Financial Group 2016 results [5] For personal use only • For the year ended 30 June 2016: – Net profit after tax $198.4 million, 14% increase1 – EPS (diluted) of 115.5 cents per share, 13% increase1 – Dividends (interim & final) of 89.3 cents per share fully franked, 19% increase1 • As at 3
Slide 6: 2016 results (cont.)
Magellan Financial Group 2016 results (cont.) [6] 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% Pr
Slide 7: Funds Management Business
Funds Management Business [7] $ 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 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 Sep 2016 30 June 2016 30 June 2015 $ million For personal use only Retail 12,637 12,041 9,809 Institutional - Australia/NZ 4,465 4,415 3,871 - North America 9,583 9,145 8,462 - Rest of World 15,625 14,894 14,239 29,673 28,454 26,572 Total FUM 42,310 40,495 36,38
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: Retail business – three channels to market
Retail business – three channels to market [11] For personal use only Independent financial • Relationships with over 500 firms1 advisers • Strong relationships and representation with 4 of the top 6 major firms, with approximately 6,800 aligned advisers Bank/AMP • Separate versions of the Magellan
Slide 12: Retail Business
Retail Business [12] Funds Under Management and Net Inflows For personal use only • Total Retail FUM was $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: $1.4 billion) Average Monthly Retail
Slide 13: National Adviser Briefing 2016
Magellan National Adviser Briefing 2016 [13] For personal use only • National adviser roadshow across Sydney, Melbourne, Canberra, Brisbane, Perth, Adelaide and Auckland • ‘Are we there yet?’ theme – Insights into technological disruption and what will shape investing in the coming decade and therea
Slide 14: National Adviser Briefing 2016: Adviser feedback
Magellan National Adviser Briefing 2016 [14] Adviser feedback For personal use only “Very thought provoking and great to “Opened my eyes to areas I haven't see Hamish and the team are thinking thought about. Glad you guys are about this in making investment looking forward so that I can keep decisio
Slide 15: National Adviser Briefing 2016: Documentary Video
Magellan National Adviser Briefing 2016 [15] ‘Documentary’ Video For personal use only
Slide 16: Institutional Business
Institutional Business [16] • Total institutional FUM was $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 inf
Slide 17: Institutional Client Diversity
Institutional Client Diversity [17] 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 18: 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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