Announcement • May 06
Magellan Financial Group Ltd Announces Closing of Magellan Global Equities Fund Magellan Financial Group Ltd. announced that the Magellan Global Equities Fund will be closed. This fund had approximately $94 million 2 in AUM at 30 April 2026. Board Change • May 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Peeyush Kumar Gupta was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 27
Magellan Financial Group Limited has completed a Follow-on Equity Offering in the amount of AUD 19.999992 million. Magellan Financial Group Limited has completed a Follow-on Equity Offering in the amount of AUD 19.999992 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 2,366,863
Price\Range: AUD 8.45 Announcement • Mar 06
Oryxium Investments Limited acquired 5.57% stake in Magellan Financial Group Limited (ASX:MFG) for AUD 79 million. Oryxium Investments Limited acquired 5.57% stake in Magellan Financial Group Limited (ASX:MFG) for AUD 79 million on March 6, 2026.
Oryxium Investments Limited completed the acquisition of 5.57% stake in Magellan Financial Group Limited (ASX:MFG) on March 6, 2026. Announcement • Mar 05
Magellan Financial Group Limited has completed a Follow-on Equity Offering in the amount of AUD 129.999997 million. Magellan Financial Group Limited has completed a Follow-on Equity Offering in the amount of AUD 129.999997 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 15,384,615
Price\Range: AUD 8.45
Transaction Features: Subsequent Direct Listing Board Change • Dec 24
High number of new directors Independent Non-Executive Director Peeyush Kumar Gupta was the last director to join the board, commencing their role in 2025. Announcement • Dec 24
Magellan Financial Group Limited, Annual General Meeting, Oct 22, 2026 Magellan Financial Group Limited, Annual General Meeting, Oct 22, 2026. Announcement • Oct 23
Magellan Financial Group Limited Announces Executive and Board Changes Magellan Financial Group Limited announced that Sam Mosse will be appointed as Company Secretary from 1 November 2025. At the same time, Emilie Cameron will step down from her role as Company Secretary, while continuing with MFG as Senior Legal Counsel. The company announced that a new Director, Peeyush Gupta AM will be joining the Board as an Independent Non-Executive Director, effective 1 November 2025. He is currently Chair of Liberty Financial Group and a Non-Executive Director of Dexus, Great Southern Bank, and Chartered Accountants Australia and New Zealand, among others. Declared Dividend • Aug 22
Final dividend of AU$0.47 announced Shareholders will receive a dividend of AU$0.47. Ex-date: 25th August 2025 Payment date: 9th September 2025 Dividend yield will be 6.6%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (82% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 3.2% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Aug 21
Now 21% undervalued Over the last 90 days, the stock has risen 27% to AU$10.59. The fair value is estimated to be AU$13.33, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Earnings per share has declined by 13%. For the next 3 years, revenue is forecast to decline by 6.3% per annum. Earnings are also forecast to decline by 0.3% per annum over the same time period. Reported Earnings • Aug 20
Full year 2025 earnings released: EPS: AU$0.93 (vs AU$1.32 in FY 2024) Full year 2025 results: EPS: AU$0.93 (down from AU$1.32 in FY 2024). Revenue: AU$318.7m (down 16% from FY 2024). Net income: AU$165.0m (down 31% from FY 2024). Profit margin: 52% (down from 63% in FY 2024). The decrease in margin was primarily driven by lower revenue. Revenue is expected to decline by 7.0% p.a. on average during the next 3 years, while revenues in the Capital Markets industry in Australia are expected to grow by 5.9%. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Board Change • Aug 18
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. 1 highly experienced director. Independent Non-Executive Director John Eales is the most experienced director on the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Apr 04
Magellan Financial Group Limited Announces Executive Appointments Magellan Financial Group Limited appointed Ben McVicar and Ofer Karliner as co-heads of global infrastructure. Karliner has more than 25 years of experience in investment. Announcement • Feb 20
Magellan Financial Group Limited Announces Chief Financial Officer Changes Magellan Financial Group Limited announced Appointment of Dean Mcguire as Chief Financial Officer, Effective Date is March 3, 2025. Mr. McGuire brings to this role extensive experience with over 17 years in financial services. Mr
McGuire joins MFG from GPT Group where he has held roles since 2011, most recently as Interim CFO and prior to that as Deputy CFO. Mr. McGuire holds a Bachelor of Commerce, a Bachelor of Engineering (Hons) and is a Chartered Financial Analyst (CFA) charter holder. Michelle Mutchnik, who has served as Interim CFO since January, will resume her duties as Deputy CFO upon Mr. McGuire commencing his employment. The Board thanks Ms. Mutchnik for stepping up during this interim period and looks forward to her continued contribution. Board Change • Feb 04
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Director John Eales is the most experienced director on the board, commencing their role in 2017. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Announcement • Jan 30
Magellan Financial Group Limited Announces Series of Personnel Changes Magellan Financial Group Ltd. announced a series of personnel updates that will support Magellan in delivering its strategic growth ambitions. Executive Team: The company announce a number of senior executive appointments: Emma Pringle joined on 13 January as Head of IR and Sustainability. Emma has 20 years of experience in financial services, most recently at Maple-Brown Abbott as Head of ESG and Portfolio Manager, and previously at BT as Head of Customer Governance and Sustainability; Jen Driscoll joined on 28 January as Chief Operating Officer. Jen spent 20 years at AllianceBernstein, where she was CEO, Australia and NZ from 2014-2024, and previously Global Co-Head of Client Service and Business Operations, and Managing Director of Client Relations, as well as working in the US and UK; Simon Barrett joined on 28 January as Head of UK and EMEA Distribution, based in the UK. Simon has over 30 years of experience in client facing roles in funds management, most recently as Co-Head of Global Institutional for Jupiter Asset Management, and prior to that at Merian Global Investors, Old Mutual Investors and Martin Currie; and Sam Mosse will join in April as Chief Risk Officer. Sam has over 30 years of experience in risk and compliance in financial services, most recently as Chief Risk Officer at Perpetual, and prior to that at Janus Henderson Investors and Macquarie Group. The company is well advanced in the search for a permanent Chief Financial Officer and will keep the market updated on progress as appropriate. Investment Team Following a review of Global Equity offerings, Alan Pullen joined the portfolio manager team for the Magellan Global Fund and associated portfolios in September 2024. From 1 February, 2025, Nikki Thomas will transition off this fund and associated portfolios to focus exclusively on the Magellan High Conviction Strategy. The Global Equities Strategy is well positioned under the leadership of Arvid Streimann and Alan Pullen, who will continue as co-portfolio managers. The High Conviction Strategy has seen strong performance under Nikki's stewardship over the last two years and see it playing a pivotal role for the existing and prospective clients, particularly in the high net worth channel. The company announced that Andrew Gowen joined Magellan on 28 January 2025 as Associate Portfolio Manager, High Conviction and will work alongside Nikki on this strategy. Andrew is returning to Australia after over 25 years working in global equities based in the UK and US. He was most recently with Lombard Odier in London as Portfolio Manager for their Global Brands Equities strategies and has worked across both long only and long short funds. Finally, advise that Gerald Stack will step down from his role as Head of Investments at Magellan after 18 years with the firm. To ensure a smooth transition of responsibilities and continuity for clients, Gerald will remain with the firm until July 2025. Gerald has led the Listed Infrastructure Team since 2007 alongside a highly capable and long-tenured team of portfolio managers and analysts. Gerald has been Magellan's Head of Investments for more than a decade and over the past two years has contributed to important initiatives to strengthen the Investment Team. He now feels the business has the stability and direction it needs for the future and will take some time off before pursuing his next opportunity. Following these changes, each of the larger investment strategies will continue to have a portfolio manager team approach, with responsibilities as follows: Global Equities: Arvid Streimann and Alan Pullen; High Conviction Global Equities: Nikki Thomas and Andrew Gowen; Listed Infrastructure: Ben McVicar, Ofer Karliner, David Costello, and Jowell Amores; and Australian Equities: Matt Williams and Emma Fisher. Announcement • Jan 14
Magellan Financial Group Ltd Appoints Michelle Mutchnik as Interim Chief Financial Officer, Effective 24 January 2025 Magellan Financial Group Ltd. has appointed Michelle Mutchnik as Interim Chief Financial Officer ("Interim CFO"), effective 24 January 2025. Michelle replaces outgoing Chief Financial Officer, Kirsten Morton, whose resignation was announced on 13 November 2024. Michelle joined Magellan in November 2020 and has held the role of Deputy Chief Financial Officer since June 2022. Magellan continues its search for a new permanent Chief Financial Officer and will keep the market updated on progress as appropriate. Board Change • Dec 24
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Director John Eales is the most experienced director on the board, commencing their role in 2017. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Announcement • Dec 01
Magellan Financial Group Ltd Announces Executive Changes Magellan Financial Group Ltd. announced that Ms Marcia Venegas has resigned as Company Secretary of the Company with immediate effect. Ms Emilie Cameron has been appointed to the role of Company Secretary of the Company effective immediately. Ms Cameron will also be the person nominated under the Listing Rule 12.6 for communication with the ASX with regards to Listing Rule matters. Board Change • Oct 25
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Director John Eales is the most experienced director on the board, commencing their role in 2017. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Announcement • Oct 24
Magellan Financial Group Limited Announces Board Changes Magellan Financial Group Limited announced that Hamish McLellan is retiring from the group -- from the Board of Magellan Financial Group at the conclusion of this meeting, following 9 years of service, and The company anticipates appointing a new non-exec director in the second half of 2025 after a further review of Board capabilities. Following Hamish's retirement, Deborah Page will be appointed to the position of Deputy Chair at the conclusion of AGM. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.0%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.0%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.0%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 19
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 18
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 18
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 18
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 17
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 17
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Declared Dividend • Aug 17
Final dividend of AU$0.36 announced Shareholders will receive a dividend of AU$0.36. Ex-date: 20th August 2024 Payment date: 4th September 2024 Dividend yield will be 6.1%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (248% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Announcement • Aug 17
Magellan Financial Group Limited Announces Dividend for the Six Months Ended June 30, 2024, Payable on September 4, 2024 Magellan Financial Group Limited announced dividend of AUD 0.35700000 per share for the six months ended June 30, 2024. Record date is August 21, 2024. Ex-date is August 20, 2024. Payment date is September 4, 2024. Announcement • Aug 15
Magellan Financial Group Limited (ASX:MFG) acquired 29.50% stake in Vinva Investment Management Limited for approximately AUD 140 million. Magellan Financial Group Limited (ASX:MFG) acquired 29.50% stake in Vinva Investment Management Limited for approximately AUD 140 million on August 15, 2024. A cash consideration of AUD 138.5 million will be paid by Magellan Financial Group Limited. As part of consideration, AUD 138.5 million is paid towards common equity of Vinva Investment Management Limited.
Magellan Financial Group Limited (ASX:MFG) completed the acquisition of 29.50% stake in Vinva Investment Management Limited on August 15, 2024. Reported Earnings • Aug 15
Full year 2024 earnings released: EPS: AU$1.32 (vs AU$1.00 in FY 2023) Full year 2024 results: EPS: AU$1.32 (up from AU$1.00 in FY 2023). Revenue: AU$378.5m (down 12% from FY 2023). Net income: AU$238.8m (up 31% from FY 2023). Profit margin: 63% (up from 42% in FY 2023). The increase in margin was driven by lower expenses. Revenue is expected to decline by 15% p.a. on average during the next 3 years, while revenues in the Capital Markets industry in Australia are expected to grow by 5.3%. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 39% per year, which means it is performing significantly worse than earnings. Recent Insider Transactions • Jun 11
Key Executive recently sold AU$545k worth of stock On the 7th of June, Hamish McLennan sold around 64k shares on-market at roughly AU$8.52 per share. This transaction amounted to 61% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Hamish's only on-market trade for the last 12 months. New Risk • Jun 09
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: AU$0 This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (124% cash payout ratio). Significant insider selling over the past 3 months (AU$0 sold). Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to AU$9.43, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 21x in the Capital Markets industry in Australia. Total loss to shareholders of 71% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$14.35 per share. Declared Dividend • Feb 17
First half dividend of AU$0.29 announced Shareholders will receive a dividend of AU$0.29. Ex-date: 20th February 2024 Payment date: 6th March 2024 Dividend yield will be 11%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by earnings (58% earnings payout ratio) but not covered by cash flows (116% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 40% over the next 3 years. Since a fall of 35% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Feb 16
First half 2024 earnings released: EPS: AU$0.57 (vs AU$0.46 in 1H 2023) First half 2024 results: EPS: AU$0.57 (up from AU$0.46 in 1H 2023). Revenue: AU$169.6m (down 15% from 1H 2023). Net income: AU$104.1m (up 24% from 1H 2023). Profit margin: 61% (up from 42% in 1H 2023). The increase in margin was driven by lower expenses. Revenue is expected to decline by 17% p.a. on average during the next 3 years, while revenues in the Capital Markets industry in Australia are expected to grow by 4.0%. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has fallen by 41% per year, which means it is performing significantly worse than earnings. Recent Insider Transactions • Oct 28
Executive Chairman recently bought AU$250k worth of stock On the 26th of October, Andrew Formica bought around 40k shares on-market at roughly AU$6.24 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. This was Andrew's only on-market trade for the last 12 months. Announcement • Oct 25
Magellan Financial Group Limited Appoints Andrew Formica as Executive Chairman, Effective 25 October 2023 Magellan Asset Management Limited ("Magellan") announced that with effect from 25 October 2023 Mr. Andrew Formica will take on the role of Executive Chairman of Magellan Financial Group Limited while it undertakes a search for a new Chief Executive Officer. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to AU$7.28, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Capital Markets industry in Australia. Total loss to shareholders of 85% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$14.54 per share. Announcement • Sep 08
Magellan Financial Group Limited Announces Board Changes Magellan Financial Group Ltd. announced the appointment of Ms. Cathy Kovacs as a Non-Executive Director to the Board of the Company, effective 6 November 2023. Ms. Colette Garnsey has informed the Company of her intention to retire from the Board at the conclusion of the Company's Annual General Meeting on 8 November 2023. These changes conclude the Company's Board renewal process that began in November 2022 and has resulted in the appointment of four new directors. The Board renewal program was implemented to ensure the Board has the right skill mix, expertise, independence, diversity and importantly, deep knowledge of the financial services and investment management industries. The Board is confident it has the requisite skills and expertise to advance the Company's growth plans. Ms. Kovacs will join the MFG Group Audit and Risk Committee and the Remuneration and Nominations Committee and will also be appointed as a Non-Executive Director of the Board of Magellan Asset Management Limited, MFG's main operating subsidiary effective 6 November 2023. Cathy Kovacs is an experienced company director and financial services professional, currently serving on the boards of ASX listed, private and not for profit companies. Ms. Kovacs is a Non-Executive Director of wealth tech HUB24, international payments provider OFX, Universities Admission Centre (UAC) for ACT and NSW, and lendtech Grapple Holdings Limited. Ms. Kovacs has 30 years' broad experience across the financial services sector including senior leadership roles at BT Investment Bank, Macquarie Group, Ellerston Capital and Westpac Banking Group. In her last executive role she was responsible for driving Westpac's strategic initiatives towards the future of financial services and managing a portfolio of investments in early stage innovative and disruptive fintech businesses. She holds a Bachelor of Commerce from UNSW, a Masters of Applied Finance from Macquarie University, is a Graduate and Member of the Australian Institute of Company Directors, and is a Member of the Association of Superannuation Funds Australia. The Board of Directors of Magellan Financial Group Limited comprises of: Mr. Andrew Formica, Non-Executive Chairman; Mr. Hamish McLennan, Deputy Chairman and Non-Executive Director; Mr. David Dixon, Non-Executive Director; Mr. John Eales, Non-Executive Director; Ms. Colette Garnsey, Non-Executive Director (retiring after the AGM on 8 November 2023); Mr. David George, Chief Executive Officer and Managing Director; Ms. Cathy Kovacs, Non-Executive Director (with effect on 6 November 2023); Mrs. Deborah Page, Non-Executive Director (with effect on 3 October 2023). Board Change • Aug 22
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director Colette Garnsey was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Aug 19
New major risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 7.2% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 5.9% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (42% net profit margin). Announcement • Aug 18
Magellan Financial Group Limited Provides Investment Team Leadership Update Magellan Financial Group Ltd. announced changes to the leadership of its investment team. In October 2022, Magellan announced that David George had been appointed to the role of Chief Investment Officer ("CIO"), alongside his role as Magellan's Chief Executive Officer ("CEO") & Managing Director. At that time, Gerald Stack, who leads Magellan's Infrastructure Strategy, was appointed to the role of Deputy CIO. Those appointments were made to facilitate an objective and forensic review of the performance of Magellan's Global Equities Strategy and to assess and implement changes that were in Magellan's control to assist in improving investment performance. During this period, deliberate and considered changes were implemented to support investment performance and drive efficiency and collaboration in Magellan's investment team. Following the changes, Magellan's investment team has seen improvements in collaboration and information flow, analyst engagement and improved processes. Investment performance in Magellan's Global Equities Strategy has also seen early signs of improvement, generating $11.0 million of performance fees in the 12 months to 30 June 2023. As a result of structural improvements in the investment team, the Board determined to revert the investment team leadership to its former `business as usual' structure, with Mr. George as CEO and Managing Director and Mr. Stack as Head of Investments. The changes to the investment team leadership structure are effective from 18 August 2023. Reported Earnings • Aug 18
Full year 2023 earnings released: EPS: AU$1.00 (vs AU$2.07 in FY 2022) Full year 2023 results: EPS: AU$1.00 (down from AU$2.07 in FY 2022). Revenue: AU$430.8m (down 22% from FY 2022). Net income: AU$182.7m (down 52% from FY 2022). Profit margin: 42% (down from 70% in FY 2022). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 14% p.a. on average during the next 3 years, while revenues in the Capital Markets industry in Australia are expected to grow by 3.1%. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has fallen by 45% per year, which means it is performing significantly worse than earnings. Announcement • Aug 18
Magellan Financial Group Limited Announces Board Changes Magellan Financial Group Ltd. announced the appointment of Mr. Andrew Formica as Non-Executive Chairman of the Board, effective from August 18, 2023, and the appointment of Mrs. Deborah Page AM as Non-Executive Director effective on 3 October 2023. Mr. Hamish McLennan will transition to the role of Deputy Chairman and Non-Executive Director, and Mr. Robert Fraser will retire from the Board with effect from August 18, 2023. Mrs. Deborah Page AM will join the Board on 3 October 2023 as a Non-Executive Director, and she will become Chair of the Audit and Risk Committee ("ARC") at this time, with David Dixon to serve as Chair of the ARC in the interim. Mrs. Page will also join the Board of the Group's main operating subsidiary, Magellan Asset Management Limited. Buying Opportunity • Jul 06
Now 24% undervalued Over the last 90 days, the stock is up 12%. The fair value is estimated to be AU$11.77, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to decline by 9.5% per annum. Earnings is also forecast to decline by 9.8% per annum over the same time period. Board Change • Jun 01
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 6 non-independent directors. Non-Executive Director David Dixon was the last director to join the board, commencing their role in 2022. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 17
First half 2023 earnings released: EPS: AU$0.46 (vs AU$1.36 in 1H 2022) First half 2023 results: EPS: AU$0.46 (down from AU$1.36 in 1H 2022). Revenue: AU$198.9m (down 50% from 1H 2022). Net income: AU$83.8m (down 67% from 1H 2022). Profit margin: 42% (down from 63% in 1H 2022). Revenue is expected to decline by 10.0% p.a. on average during the next 3 years, while revenues in the Capital Markets industry in Australia are expected to grow by 3.3%. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 49% per year, which means it is performing significantly worse than earnings. Announcement • Feb 17
Magellan Financial Group Limited Announces Dividend for the Six Months Period Ending December 31, 2022, Payable on 8 March 2023 Magellan Financial Group Limited announced dividend of AUD 0.46900000 for the six months period ending December 31, 2022. Ex Date is on 21 February 2023, Record Date is on 22 February 2023 and payment date is on 8 March 2023. Announcement • Dec 06
Magellan Financial Group Limited to Report First Half, 2023 Results on Feb 16, 2023 Magellan Financial Group Limited announced that they will report first half, 2023 results on Feb 16, 2023 Recent Insider Transactions • Nov 10
Insider recently sold AU$17m worth of stock On the 4th of November, Hamish Douglass sold around 2m shares on-market at roughly AU$9.92 per share. This transaction amounted to 21% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$27m more than they bought in the last 12 months. Reported Earnings • Aug 19
Full year 2022 earnings released: EPS: AU$2.07 (vs AU$1.45 in FY 2021) Full year 2022 results: EPS: AU$2.07 (up from AU$1.45 in FY 2021). Revenue: AU$550.1m (down 24% from FY 2021). Net income: AU$383.0m (up 44% from FY 2021). Profit margin: 70% (up from 37% in FY 2021). The increase in margin was driven by lower expenses. Over the next year, revenue is expected to shrink by 27% compared to a 2.2% decline forecast for the Capital Markets industry in Australia. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 35% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improved over the past week After last week's 19% share price gain to AU$13.77, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 16x in the Capital Markets industry in Australia. Total loss to shareholders of 74% over the past three years. Recent Insider Transactions • Jul 03
Insider recently sold AU$9.8m worth of stock On the 29th of June, Hamish Douglass sold around 760k shares on-market at roughly AU$12.93 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$9.4m more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment deteriorated over the past week After last week's 17% share price decline to AU$12.91, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 16x in the Capital Markets industry in Australia. Total loss to shareholders of 68% over the past three years. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment deteriorated over the past week After last week's 18% share price decline to AU$17.90, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 16x in the Capital Markets industry in Australia. Total loss to shareholders of 41% over the past three years. Reported Earnings • Feb 20
First half 2022 earnings: EPS in line with analyst expectations despite revenue beat First half 2022 results: EPS: AU$1.36 (up from AU$1.11 in 1H 2021). Revenue: AU$398.9m (up 21% from 1H 2021). Net income: AU$251.6m (up 24% from 1H 2021). Profit margin: 63% (up from 61% in 1H 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.9%. Over the next year, revenue is expected to shrink by 17% compared to a 7.2% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 13% per year. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment deteriorated over the past week After last week's 15% share price decline to AU$16.50, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 19x in the Capital Markets industry in Australia. Total loss to shareholders of 37% over the past three years. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment deteriorated over the past week After last week's 34% share price decline to AU$19.76, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 20x in the Capital Markets industry in Australia. Total loss to shareholders of 4.3% over the past three years. Board Change • Dec 06
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Non-Executive Director Colette Garnsey was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Oct 07
Independent Non-Executive Director Paul Lewis has left the company On the 30th of September, Paul Lewis' tenure as Independent Non-Executive Director ended after 14.8 years in the role. As of June 2021, Paul still personally held 600.00k shares (AU$32m worth at the time). Paul is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 4.67 years. Recent Insider Transactions • Oct 07
CEO, MD & Executive Director recently bought AU$372k worth of stock On the 28th of September, Brett Cairns bought around 10k shares on-market at roughly AU$37.20 per share. This was the largest purchase by an insider in the last 3 months. Brett has been a buyer over the last 12 months, purchasing a net total of AU$995k worth in shares. Recent Insider Transactions • Sep 16
Independent Non-Executive Director recently bought AU$99k worth of stock On the 14th of September, John Eales bought around 3k shares on-market at roughly AU$39.11 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold AU$14m more in shares than they bought in the last 12 months. Reported Earnings • Aug 19
Full year 2021 earnings released: EPS AU$1.45 (vs AU$2.18 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: AU$719.9m (up 3.6% from FY 2020). Net income: AU$265.2m (down 33% from FY 2020). Profit margin: 37% (down from 57% in FY 2020). The decrease in margin was driven by higher expenses. Funds under management (FUM) Beginning of period: AU$97.2b End of period: AU$113.9b Net inflows/outflows: AU$4.50b inflow Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Feb 20
New 90-day low: AU$45.94 The company is down 26% from its price of AU$62.49 on 20 November 2020. The Australian market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$56.00 per share. Recent Insider Transactions • Feb 17
CEO, MD & Executive Director recently bought AU$623k worth of stock On the 12th of February, Brett Cairns bought around 13k shares on-market at roughly AU$47.95 per share. This was the largest purchase by an insider in the last 3 months. This was Brett's only on-market trade for the last 12 months. Reported Earnings • Feb 12
First half 2021 earnings released: EPS AU$1.11 (vs AU$1.08 in 1H 2020) The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: AU$329.9m (down 8.9% from 1H 2020). Net income: AU$202.3m (up 3.4% from 1H 2020). Profit margin: 61% (up from 54% in 1H 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 25% per year. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue misses expectations Revenue missed analyst estimates by 0.5%. Over the next year, revenue is forecast to grow 7.5%, compared to a 3.5% growth forecast for the Capital Markets industry in Australia. Is New 90 Day High Low • Feb 01
New 90-day low: AU$47.36 The company is down 19% from its price of AU$58.26 on 04 November 2020. The Australian market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$56.51 per share. Is New 90 Day High Low • Jan 14
New 90-day low: AU$49.35 The company is down 21% from its price of AU$62.25 on 16 October 2020. The Australian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$57.24 per share. Is New 90 Day High Low • Dec 24
New 90-day low: AU$54.40 The company is down 3.0% from its price of AU$56.07 on 25 September 2020. The Australian market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$57.01 per share. Announcement • Dec 23
Magellan Financial Group Limited (ASX:MFG) entered into an agreement to acquire 10% stake in Guzman Y Gomez (Holdings) Pty Limited for AUD 86.8 million. Magellan Financial Group Limited (ASX:MFG) entered into an agreement to acquire 10% stake in Guzman Y Gomez (Holdings) Pty Limited for AUD 86.8 million on December 22, 2020. Magellan’s Head of Governance & Advisory, Craig Wright, will be appointed as a Non-Executive Director of Guzman Y Gomez (Holdings) Pty Limited. Completion is subject to approval from the shareholders of Magellan Financial Group Limited. Completion is expected in late January 2021. Announcement • Dec 16
Magellan Financial Group Limited Launches MFG Core Series and Magellan Sustainable Fund Magellan Financial Group Limited announced the launch of the MFG Core Series and Magellan Sustainable Fund which commence trading on Chi-X. The MFG Core Series is a series of investment strategies, initially comprising: the MFG Core International Fund (Ticker: MCSG); the MFG Core ESG Fund (Ticker: MCSE); and the MFG Core Infrastructure Fund (Ticker: MCSI) that leverage Magellan's investment philosophy and proprietary research to offer investors lower cost more diversified portfolios of high quality companies. The Magellan Sustainable Fund offers investors a high conviction, global equities portfolio of high quality companies with meaningfully lower carbon factor risk than global markets. The MFG Core Series funds have a management fee of 0.50% p.a.