Magellan Financial Group Ltd · ASX:MFG
Magellan Financial — Shareholder Meeting (2017)
17 slides from Magellan Financial's shareholder meeting presentation, 2017
Slide 1: Magellan Financial Group Limited 2017 AGM Presentation
Magellan Financial Group Limited 2017 AGM Presentation Hamish Douglass | CEO & Chief Investment Officer
Slide 2: 11-year journey
Magellan Financial Group 11-year journey $1,000 invested in 2007, worth ~$30,000 today, ~39% p.a.1 2006 2012 • Sep-06: Establishment of Magellan Aug 2011 • Nov-12: St James’s Place ~£2 • Dec-06: Magellan Flagship Fund IPO First dividend of 1.5c billion global equities mandate 2007 • Jul-07: Magellan
Slide 3: Where we stand today
Magellan Financial Group Where we stand today • Sydney-based specialised, long-only global equities and global listed infrastructure fund manager • $53.1 billion in funds under management • Retail funds under management of $16.8 billion, with over 250,000 underlying unitholders • Institutional funds
Slide 4: 2017 Highlights
2017 Highlights • Strong growth in funds under management and management and services fees: • Average funds under management up 16% to $45.7 billion1 • Management and services fee revenue up 15% to $307.2 million1 • Underlying profitability before tax and performance fees of the Funds Management bus
Slide 5: Business update
Business update Cricket Australia – Domestic Test Series Sponsorship • 3 year sponsorship with 2 year option • Significant brand building opportunity • Attractive target demographics • Supports our self-directed investor strategy Launch of Magellan Global Trust • ASX listed closed end trust • Raised
Slide 6: Magellan Financial Group Final Results
Magellan Financial Group Final Results $ million 30 June 2017 30 June 2016 % change Management and services fees 307.2 266.6 15% Performance fees 21.7 48.0 (55%) Other revenue 9.4 19.2 (51%) Revenue 338.3 333.8 1% Expenses (82.1) (74.1) 11% Profit before tax expense 256.1 259.7 (1%) Profit after tax
Slide 7: Funds Management Business
Funds Management Business $ million 30 June 2017 30 June 2016 % change Revenue Management fees 300.5 258.4 16% Performance fees 21.7 48.0 (55%) Services fees 6.7 8.2 (19%) Interest/other income 0.3 0.6 (50%) 329.2 315.3 4% Expenses Employee expense 47.3 42.0 13% 1 US marketing/consulting fees 7.9 7.
Slide 8: Employee summary
Employee summary Staff 30 June 2017 30 June 2016 Investment team Portfolio Managers/Analysts 33 32 Traders 3 3 36 35 Governance & Advisory 5 4 Distribution 35 30 Risk, Compliance, Legal & Company Secretarial 8 7 Business Support & Control 17 17 Administration 7 7 Total 108 100 • Expect Group staff e
Slide 9: Business Strategy
Business Strategy Magellan| 9
Slide 10: Three Focused Investment Strategies
Three Focused Investment Strategies Investment Portfolio FUM Strategy Managers Description (A$bn) Hamish Douglass • Global Equities, High Conviction, Global Trust Global Equities 44.5 Stefan Marcionetti • Specialised and focused global equity strategy Gerald Stack Global Listed • Select (specialised
Slide 11: Channels to market
Channels to market Client Number of FUM concentration direct clients ($bn) High 30+ ~30.7 Institutional mandates Institutional fund clients 100+ ~5.6 Bank / AMP aligned 61 ~7.5 Broker advised / Independent Financial Advisers 500+1 ~8.5 Low Non-aligned individual decision makers ~14,000 ~1.0 Magellan
Slide 12: Retail Self-directed Strategy
Retail Self-directed Strategy • Estimated self-directed investable assets of ~$500bn1 Market opportunity • Estimated global equities opportunity of $50-75bn2 • Australian self-directed investors are materially underweight global equities • Magellan brand awareness is low amongst self-directed invest
Slide 13: Building Brand Awareness
Building Brand Awareness • Existing clients are the best advocates Client referral • Initiatives including Gala Dinner and future Investor Days • 3-year agreement as the naming rights sponsor for the Australian domestic Test series • Cricket Australia domestic test series sponsorship provides a high
Slide 14: Magellan Inaugural Gala Dinner
Magellan Inaugural Gala Dinner • Inaugural Gala Dinner in Melbourne in February 2017 • Presentation to ~2,000 investors comprising advisers, brokers and their clients • ‘Where are we headed?’ theme • Insights into advances in Artificial Intelligence and technology, Trump and other global macro theme
Slide 15: 2017 Gala Dinner Video
2017 Gala Dinner Video ‘Documentary’ Video Magellan| 15
Slide 16: Important Information
Important Information 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 relia
Slide 17: www.magellangroup.com.au Phone: +61 2 9235 4888
www.magellangroup.com.au Phone: +61 2 9235 4888
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