It is always good to see and hear from the people running the business and not just reading the words, view the charts and looking at the report. You hear the heart of the people behind the business and not just read the report.
I am always a fan of listening to the breakdown of the annual report and hear their vision and what they see the upcoming headwinds and the strategic moves to catch the tailwinds for the business.
I am impressed with the people behind the business: Hamish Douglass, Chairman & CIO; Brett Cairns, CEO; Kirsten Morton, CFO.
The business is essential has two areas
> Fund Investments: investments in our funds that provide alignment with our clients and allow for seeding of new strategies (Core business - focus area)
> Capital Partners: strategic investment outside Magellan's funds mangement business that meet stringent criteria (Not managing these businesses)
Business Overview: pg. 7 - 11.
Funds Management Business pg. 8
Investment Performance pg. 9
FY21 Net Flows pg. 10
Funds Under Management pg. 11
Business Overview: Business Resilenceand Diversification update pg. 12 - 14
Recent Fund Initiatives: pg. 15
- MFG Core Series
- Magellan Sustainable Fund
- Magellan FuturePay
Principle Investment update: pg 17 - 22
- Fund Investments
- Magellan Capital Partners
Fund Investment pg. 18
The breakdown of the Magellan Capital Partners: pg. 19
Criteria:
1. High quality management teams
2. High quality companies with meaningful scale in their sector
3. Contributes to the intellectual capital of the busienss and provides meaningful optionality
4. Attractive financial returns
Barrenjoey partnering with Barclays: pg. 20
INVESTMENT:
$156M for 40% non-dilutive economic stake (5% voting)
BUSINESS UPDATE:
- Strong start as a new firm, with $250 high quality team employed
- Established many of the key systems and processes required
- Recently commenced publishing company research and is expected to be covering more than 80 ASX listed entities by the end of the year
FinClear pg. 21
INVESTMENT:
$20M investment for 15% (fully diluted) shareholding.
Relationship to explore initiatives to improve access and reduce friction for investors
BUSINESS UPDATE:
- Continued to grow the business, bringing on-board a number of established client such as Praemium, Superhero and Stake.
- In early July 2021, FinClear completed the acquisition of Pershing Securities Australia which is expected to bring significantly greater operating scale and allow FinClear to expand its service offering
Guzman y Gomez pg. 22
INVESTMENT:
$103M investment for 12% (fully diluted) shareholding
BUSINESS UPDATE:
- GYG had a strong year, exceeding its budgeted earnings by almost 50% despite difficult trading conditions
- COVID-19 conditions have broadly benefited the business, particularly in its convenience focussed drive-thru restaurants
- Acheived new restaraunt opening target for the year and now has 157 corporate-owned and franchised restaurants
Globel Equity Strategy Objectives pg. 23 - 27
> UPLOADED THE MAGELLAN FINANCIAL GROUP FULL YEAR RESULTS WEBINAR slides on company straw.
DISC - Holding
