Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — Shareholder Meeting (October 2014)
22 slides from Magellan Financial's shareholder meeting presentation, Oct 20, 2014
Slide 1: 2014 Annual General Meeting: Chairman's Address & CEO's Presentation
For personal use only 20 October 2014 ASX Limited ASX Market Announcements Office Exchange Centre 20 Bridge Street SYDNEY NSW 2000 MAGELLAN FINANCIAL GROUP LIMITED (ASX: MFG) 2014 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS & CEO’s PRESENTATION Amended copies of the following documents are submitted t
Slide 2: Important Notice
Important Notice 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 accuracy, adequacy or reliabilit
Slide 3: Chairman's Address: business objectives and culture
a world class business built on broad and solid foundations, spanning products, people and geographies will help ensure enduring long-term partnerships across all our constituents. We believe that by constantly pursuing these objectives our business can, and will, be able to compete successfully bot
Slide 4: Chairman's Address: clients, products and capital management
business continues to develop and broaden with now over 80 client relationships across a range of geographies. At the beginning of last financial year we launched several new products: a foreign exchange hedged version of the Global Fund; a foreign exchange unhedged version of the Infrastructure Fun
Slide 5: Chairman's Address: independent director loan plan
prices, will then be held in locked trading accounts as security for the loans, with all dividends paid on the shares swept to repay the loans. Most importantly, these loans are full recourse to Karen and Robert and are not just limited to shares held as security. Therefore, the plan does not provid
Slide 6: Magellan Financial Group Limited 2014
For personal use only Magellan Financial Group Limited 2014 AGM Presentation Hamish Douglass | Chief Executive Officer | 17th October 2014
Slide 7: Magellan Financial Group Overview
Magellan Financial Group Overview For personal use only [2] • For the year ending 30 June 2014: – Net profit after tax $82.9 million, 71% increase1 – EPS of 48.9 cents per share, 67% increase2 – Dividend (interim & final) of 38.3 cents per share, 78% increase3 • As at 30 June 2014: – Strong balance
Slide 8: Magellan Financial Group Overview (continued)
Magellan Financial Group Overview [3] Continued For personal use only • Two business activities – Magellan Asset Management (Funds Management Business) – Principal Investments • Continuing dividend policy 75%-80% of underlying profit of funds management segment1 • Final dividend payment date brought
Slide 9: Funds Management Business
Funds Management Business For personal use only [4] $ million 30 June 2014 30 June 2013 % change Revenue Management fees 132.6 56.0 137% Performance fees 2.1 28.5 (93%) Service fees 3.9 - n/a 1 Consulting fees - 1.2 n/a Interest/other income 0.5 1.1 (53%) 139.1 86.8 60% Expenses Employee expense 23.
Slide 10: Funds Under Management Summary
Funds Under Management Summary For personal use only [5] 30 Sept 2014 30 June 2014 30 June 2013 $ million Retail 7,278 6,693 4,542 Institutional - Australia/NZ 3,135 2,889 2,424 - North America 5,561 4,690 2,891 - Rest of World 10,816 9,241 4,838 19,512 16,820 10,153 Total FUM 26,790 23,513 14,695 %
Slide 11: Funds Under Management Capacity
Funds Under Management Capacity For personal use only [6] • Current theoretical capacity of the Global Equity and Infrastructure strategies is US$50 billion1 – Global Equities US$40 billion – Infrastructure US$10 billion • Theoretical capacity is not static and should be approximately indexed to cha
Slide 12: Employee Summary
Employee Summary For personal use only [7] 30 Sept 2014 30 June 2014 30 June 2013 Investment Professional 28 24 22 Administration 2 2 2 30 26 24 Distribution Professional 17 15 14 Administration 2 3 1 19 18 15 Business Support & Control Professional 22 22 17 Administration 3 3 2 25 25 19 Total 74 69
Slide 13: Retail Business
Retail Business [8] FUM and Net Inflows For personal use only • Total Retail FUM is $6.7 billion at 30 June 2014 (30 June 2013: $4.5 billion) • Total Net Retail Inflows for the year to 30 June 2014: $2.1 billion (year to 30 June 2013 was $1.8 billion) • Average Monthly Retail Net Inflows: Magellan G
Slide 14: Retail Business: New Funds Update
Retail Business [9] New Funds Update For personal use only • Three new funds launched for Australian and New Zealand Investors on 1 July 2013 – Magellan Global Fund (Hedged) – Magellan Infrastructure Fund (Unhedged) and – Magellan High Conviction Fund. • Magellan High Conviction Fund – Unconstrained
Slide 15: Distribution Opportunities
Distribution Opportunities For personal use only [10] Two new distribution channels: • Bank/AMP aligned advice markets – Substantial progress over the last 3-6 months – Expect to gain traction in these channels over the coming year • Self directed self managed superannuation – Working on an ASX list
Slide 16: Institutional Business
Institutional Business For personal use only [11] • Total institutional FUM is $16.8 billion at 30 June 2014 (30 June 2013:$10.1 billion) – Global equities $13.2 billion – Infrastructure $3.6 billion • More than 80 institutional clients1 at 30 June 2014 • Net inflows for the year ended 30 June 2014
Slide 17: Regular Monthly Institutional Net Inflows - Global Equity
Institutional Business [12] Regular Monthly Institutional Net Inflows - Global Equity1 For personal use only 300 Average Monthly Net Inflow: $162 million - last 12 months 250 200 150 100 50 - Institutional Monthly Flows 1 Separate accounts with regular monthly inflows which Includes St James’s Place
Slide 18: Update on Investment Performance
Update on Investment Performance [13] Investment Performance for the period to 30 September 2014 For personal use only Since 1 Year 3 Years 5 Years Inception (%) (% p.a.) (% p.a.) (% p.a.) Magellan Global Fund ($A) 16.7 24.1 16.6 10.2 MSCI World NTR Index ($A) 19.9 22.1 11.1 2.6 MSCI World Minimum V
Slide 19: Update on Net Inflows
Update on Net Inflows [14] Net Inflows for the quarter ending 30 September 2014 For personal use only $million Retail Institutional Total July 2014 198 1,242 1,440 August 2014 133 52 185 September 2014 100 301 401 Total 431 1,595 2,026 1 Includes Colonial First State Magellan Global Option
Slide 20: Principal Investments
Principal Investments For personal use only [15] • Principal Investments include investments in Magellan Funds, listed shares, a small number of unlisted investments and surplus cash after allowing for the Group’s working capital requirements. • Board set a pre-tax hurdle 10% p.a. (over business cyc
Slide 21: Principal Investments (continued)
Principal Investments (continued) For personal use only [16] Investment ($ million) 30 June 2014 30 June 2013 Cash 0.3 0.4 Magellan Unlisted Funds1 115.5 73.1 Listed shares 10.1 21.6 Listed subordinated bank notes - 4.3 Other2 3.5 2.8 Total 129.4 102.2 Deferred tax liability3 (9.7) (7.9) Payables –
Slide 22: Important Information
Important Information For personal use only [17] 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
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