Magellan Global Opportunities Fund - Active ETF · ASX:OPPT
Magellan Global Opportunities Fund - Active ETF — Magellan High Conviction Fund — High Conviction Webinar (April 2021)
20 slides from Magellan Global Opportunities Fund - Active ETF's conference presentation, April 2021
Slide 1: Maintaining High Conviction In An Uncertain World
Maintaining High Conviction In An Uncertain World April 2021
Slide 2: Important information
Important information Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited ABN 31 120 593 946, AFS Licence No. 304 301 (”Magellan”). This material is issued by Magellan and has been prepared for general information purposes only and must not be construed as investm
Slide 3: Magellan High Conviction strategy
Magellan High Conviction strategy Compounding Machine A Magellan product… …with unique features Magellan investment philosophy Long-term compounding in 8-12 best ideas secular winners Magellan investment process 3% target cash distribution 50% maximum cash Magellan investment team yield per annum Ob
Slide 4: Portfolio of advantaged and undervalued companies
Portfolio of advantaged and undervalued companies Digital Cloud Digital Mobile and Digital Fin. Chinese Digital Cash 6% Payments Computing Advertising E-Commerce Networks Consumer Media 15% 15% 11% 11% 9% 9% 7% 6% 6% 5% Magellan High Conviction Fund as at 31 March 2021. Magellan defined sectors. Exp
Slide 5: Long-term compounding in advantaged businesses
Long-term compounding in advantaged businesses Returns from positions held >3 years Holding Month of Investment Years Held Annual Share Price Gain Jun 2016 4.8 + 26% Nov 2013 7.3 + 21% Nov 2015 3.9 21% Jun 2013 4.1 20% Feb 2017 4.1 + 17% Jun 2013 5.9 15% Jun 2013 3.1 12% Jun 2013 3.3 11% Oct 2015 3.
Slide 6: Consistent outperformance > 10% p.a. objective
Consistent outperformance > 10% p.a. objective Strategy outperformed objective 93% of the time with avg. 3 year net return of 13.8% p.a. Growth of $10,000 Since Inception# $27,897 $30,000 14.2% p.a. 3 Year Rolling Returns Against Strategy’s 10% p.a. After Fees Return Objective $25,000 Number of mont
Slide 7: Netflix Case Study
Netflix Case Study Magellan | 7
Slide 8: Streaming a long-term winner with huge potential
Streaming a long-term winner with huge potential • Superior user experience and value proposition. • Streaming benefiting from virtuous cycle. • Over US$200b in global household spend on pay-tv up for grabs. • Streaming household penetration likely to exceed pay-tv. • Dominant form of distribution f
Slide 9: Netflix incredibly well positioned given its immense scale
Netflix incredibly well positioned given its immense scale Content is largest expense and hugely scalable Netflix Content Cash Spend (US$, b) 25.0 • >200m global subscribers. • Best in class value proposition. 20.0 • Constant stream of new content. 15.0 • Proven ability to scale local content global
Slide 10: Netflix incredibly well positioned given its immense scale
Netflix incredibly well positioned given its immense scale Content is largest expense and hugely scalable • Industry leading 160 Emmy nominations in 2020: Ozark, The Crown, The Queen’s Gambit, Stranger Things • Industry leading 37 Oscar nominations in 2021, third highest by any studio ever. Netflix
Slide 11: and early mover status globally
and early mover status globally Netflix available globally ex-China by 2016, years ahead of peers Netflix Subscribers (m) 250 • US only ~1/3rd of subscribers as at Dec 31, 2020. 200 • Deep understanding of local consumer preferences. • Significant pipeline of local original content. 150 • Establishe
Slide 12: Large runway for Netflix subscriber growth
Large runway for Netflix subscriber growth • Added ~25m subscribers a year from 2015-2020. • Potential to reach 400m subscribers by 2030 with additional upside. Netflix Subscribers (m) 450 400 400 350 300 250 204 200 167 139 150 111 89 100 71 50 0 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024
Slide 13: Netflix has significant latent pricing power
Netflix has significant latent pricing power • Netflix service significantly under priced relative to the value it provides. • Potential for subscription ARPU to nearly double by 2030. Netflix global ARPU (US$/month) 25.0 20 20.0 15.0 10.8 11.1 10.3 9.4 10.0 8.2 8.6 5.0 0.0 2015 2016 2017 2018 2019
Slide 14: Netflix represents a compelling long-term investment
Netflix represents a compelling long-term investment • Potential ~US$100b in revenue by 2030. • Scalable model supports significant margin expansion. • Highly defensive business model. • Attractive long-term investment. RP198 Magellan | 14
Slide 15: Macro & Market Views
Macro & Market Views Magellan | 15
Slide 16: Short term risks balanced
Short term risks balanced • Effective vaccine rollout • Vaccine escape mutation • Reopening of economies • Bursting of speculative bubbles • Record monetary and fiscal stimulus • Inflation/reversal of monetary policy Material market correction Continued strong equity markets (>20%) RP204 Magellan |
Slide 17: Q&A
MAGELLAN RTS IN GLOBAI
Slide 18: Portfolio of advantaged and undervalued companies
Portfolio of advantaged and undervalued companies Digital Cloud Digital Mobile and Digital Fin. Chinese Digital Cash 6% Payments Computing Advertising E-Commerce Networks Consumer Media 15% 15% 11% 11% 9% 9% 7% 6% 6% 5% Magellan High Conviction Fund as at 31 March 2021. Magellan defined sectors. Exp
Slide 19: Increased Disclosure
Increased Disclosure Magellan | 19
Slide 20: Increased disclosure
Increased disclosure Magellan High Conviction Strategy’s new disclosure policy Quarter End Detail Location - Fund Location - Trust March Alphabetical holdings after approx. 2 month lag Magellan Website ASX Website June Holdings and weights in Annual Letter Magellan Website ASX Website September Alph
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