Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — H1 2025 Earnings Presentation
31 slides from Magellan Financial's earnings presentation, Feb 20, 2025
Slide 1: Interim Results Briefing
For personal use only Interim Results Briefing Half year ended 31 December 2024 Andrew Formica | Executive Chairman Sophia Rahmani | CEO-Elect Michelle Mutchnik | Interim CFO
Slide 2: Agenda
For personal use only 1. 1H25 overview Andrew Formica 3 2. Investment management update Sophia Rahmani 6 3. Strategic partners Andrew Formica 11 4. Group financials Michelle Mutchnik 15 5. Strategy and capital management update Sophia Rahmani 20 |2
Slide 3: 1H25 overview
For personal use only Andrew Formica | Executive Chairman
Slide 4: 1H25 highlights
For personal use only 1 2 3 4 5 [1] Announced 30 January 2025 and 20 February 2025. [2] Compared with 1H24. |4
Slide 5: Group at a glance
For personal use only Focused group Global covering investment 100 employees distribution management and specialist as at 31 December 2024 spanning Australia, NZ, financial services North America and EMEA $927 million No debt 26.4 cps Net Tangible Assets ($5.17 per Total liabilities of $70.9 interim
Slide 6: Investment management update
For personal use only Sophia Rahmani | CEO-Elect
Slide 7: For personal use only
For personal use only 2 1 5 4 3 |7
Slide 8: Assets under management
For personal use only Assets under management1,2 “AUM” ($ billion) ▪ Net outflows of ~$2.8 bn for 1H25, ~$2.4 bn from retail Global Equities channel, of which $1.2 bn related to MGF conversion ▪ Investment returns of $1.7 bn for the half $38.6 ▪ Retail book represents 80% of AUM $36.6 $4.5bn 3 0.2 $
Slide 9: Retail and institutional flows
For personal use only 0.5 0.1 - (0.4) (0.4) (0.6) ▪ $1.2 bn outflows in Q1 (0.5) (0.9) FY25 due to MGF Retail Flows (1.0) (1.0) (1.2) conversion (1.4) (1.4) (1.3) (A$ billion) (1.7) (1.6) (1.5) (2.0) FY25 (2.5) Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 4
Slide 10: Investment performance
For personal use only 1 year 3 years 5 years Since inception As at 31 December 2024 (%) (% p.a.) (% p.a.) (% p.a.)1 Magellan Global Fund 29.62 10.05 9.71 11.66 Excess return on benchmark (1.16) (2.14) (4.32) 2.79 ▪ Investment performance remains key focus Magellan Global Opportunities Fund 30.67 13.
Slide 11: Strategic partners
For personal use only Andrew Formica | Executive Chairman
Slide 12: Barrenjoey 1H25 business update
For personal use only 1H25 business update Strong momentum ▪ All key business lines recorded revenue increases vs PCP, resulting in overall group ▪ Barrenjoey now represented on New revenue up 20% Zealand and all Australian state and ▪ Revenue increases coupled with cost control delivered a 2.4x inc
Slide 13: Vinva
For personal use only ▪ Strong 1H financial result driven by exceptional FY25 performance Vinva's existing momentum with their own relationships driving ▪ Three Vinva funds launched by MFG which will target the significant growth ANZ retail market: ▪ Vinva Global Equity Fund (long only) ▪ Vinva Aust
Slide 14: FinClear
For personal use only Strong growth across key metrics New products FCX ▪ Funds under administration (FUA) at ▪ FX product live, full platform launch ▪ Unique private market and $170 billion with 1.4 million investor expected in March 2025 settlement facility client accounts ▪ Complements existing c
Slide 15: Group financials
For personal use only Michelle Mutchnik| Interim CFO
Slide 16: Group financial summary
For personal use only 1 2 3 4 5 [1] Comparisons are with prior corresponding period, 1H24. [2] Adjustments are made for strategic, non-recurring, non-cash or unrealised items. [3] Adjusted for tax and net gain/(loss) on dilutions of associates. | 16
Slide 17: Group adjusted results
For personal use only $ million 31 Dec 2024 31 Dec 2023 % change Management and services fees 121.6 130.3 (7%) Performance fees 6.1 0.1 nm% Other revenue and income 32.2 52.4 (39%) • Performance fees of $6.1 million, mainly due to Adjusted revenue and other income 159.9 182.8 (12%) crystallised fees
Slide 18: Investment management results
For personal use only $ million 31 Dec 2024 31 Dec 2023 % change Revenue Management fees 121.0 129.7 (7%) Performance fees 6.1 0.1 nm Services fees 0.6 0.6 nm • Represents the core operating business that drives profits and Other revenue and income 2.1 0.9 nm dividends 129.8 131.2 (1%) Expenses • Pr
Slide 19: Net fund investments and strategic partners
For personal use only $ million 31 Dec 2024 30 Jun 2024 % change 1 Net fund investments 393.0 371.1 6% • Net fund investments grew 6% to $393 million reflecting Net Fund Investments per share ($) 2 positive investment performance and additional investment 2.19 2.05 7% into Airlie Small Companies Fun
Slide 20: Strategy and capital management update
For personal use only Sophia Rahmani | CEO-Elect
Slide 21: Industry trends and implications
For personal use only Shift from product to service; increased demand for customised client solutions Consolidation and efficiency initiatives to address Deeper relationships, with broader delivery ongoing fee pressure and margin compression capabilities Client oriented engagement models, focused on
Slide 22: Business overview: 100% owned and strategic partners
For personal use only Business focus Global equities Listed infrastructure Australian equities Systematic equities Investment banking Settlement / clearing Ownership 100% 100% 100% 29%1 36%2 16% FY24 revenue3 $173m $69m $15m $427m / $141m4 1H25 revenue3 $78m $33m $10m $270m / $89m4 FY24 94% 6% 1H25
Slide 23: Strategic positioning
For personal use only Firmly anchored in investment Leading innovator in Australia's management while expanding dynamic financial services landscape capabilities to serve evolving client needs Consistent focus on delivering superior financial outcomes for our clients Long-term partner, cultivating d
Slide 24: Strategic partnership investment rationale
For personal use only Targeted investments in high-quality businesses that ✓ High-quality investment manager with strong long-term complement our core capabilities. Focus on adjacent investment performance services that serve existing clients, position us for future growth and generate strong capita
Slide 25: Partnership approach
For personal use only Track record of identifying and prosecuting compelling Alignment through design of ownership, incentive and opportunities remuneration frameworks Sought after and reliable partner, valued for our integrity; Long-term partner, flexible investment, operating and Limit ‘internal’
Slide 26: Capital management review
For personal use only ▪ The Board has undertaken a review of the ongoing capital requirements of MFG to execute its strategic growth objectives and has concluded: – There is an ongoing capital requirement to support growth initiatives – Cash and fund investments will continue to be recycled to suppo
Slide 27: Liquid assets and capital position
For personal use only $582m $582m Strategic capital Global distribution New strategic partnerships Existing partnerships Net fund $393m $407m investments1 Seed capital Seeding of investment strategies and enhancing distribution opportunities Corporate requirements $75m Regulatory capital Cash $189m
Slide 28: Priorities
For personal use only ▪ Continue focus on long-term investment performance across strategies ▪ Capitalise on expanded capability set and product delivery, including Magellan Global Opportunities, Airlie Small Companies, Vinva and managed account share classes ▪ Embed global distribution capabilities
Slide 29: Q&A
For personal use only Q&A MAGELLAN FINANCIAL GROUP
Slide 30: Important notice and disclaimer
For personal use only This presentation has been prepared by Magellan Financial Group Ltd ACN 108 437 592 (‘Magellan’). This presentation contains summary information about Magellan, its related bodies corporate and its strategic partners and is current as at 20 February 2025. While the information
Slide 31: Contact details
For personal use only www.magellangroup.com.au Phone: +61 2 9235 4888
Magellan Financial Group — H1 2025 Earnings Presentation on 6ix