Letter from the CEO

Brett Cairns, Magellan Financial Group CEO

I am delighted to present Magellan Financial Group’s full year results for the year ended 30 June 2020. In my CEO letter, I discuss the financial results in detail, how the business is positioned and future initiatives that our team has been busy on. I also discuss the impact that COVID-19 has had on our business. Whilst Magellan’s business has thankfully not been at the front line of the virus’ impact, we are still mindful of the impact it has had on those we interact with: our investors and their advisers, our staff, colleagues, friends, and all their families.

The financial results achieved by Magellan Financial Group during the period are a result of strong growth in funds under management. Average funds under management increased 26%, leading to a 25% increase in management and services fees to $591.6 million and a 20% increase in adjusted net profit after tax to $438.3 million for the year ended 30 June 2020. We are pleased with this outcome, particularly given the severe market volatility seen around the world driven by the COVID-19 pandemic. This could not have been achieved without the performance of our investment strategies which exhibited the strong downside protection traits that are a key component of our investment objectives.

Continue reading

Full Year Results for the year ended 30 June 2020

Recent Investment Insights

Knowing what you don't know

Hamish Douglass, Chairman and Chief Investment Officer, reflects on the last six months and explains why a framework of analysing 'known unknowns', when applied to the coronavirus pandemic, should lead investors to be cautious. The known unknowns surrounding the virus include whether or not the virus mutates in a malicious way, the risk of a second wave of infections and the possibility of finding a cure. The known unknowns surrounding the economic damage of the virus include the true level of unemployment, how banks will respond at the end of servicing holidays and whether or not large government deficits financed via increases in the size of central bank balance sheets will lead to inflation.

Read article

Perspectives on the future of the global economy

Hamish Douglass, Chairman and Chief Investment Officer, spoke with Janet Yellen, the most recent former chair of the Federal Reserve, and an adviser to Magellan, about the covid-19 health and economic crisis. The pair discuss the response of the Federal Reserve and how the crisis of 2008-09 has given guidance to the response. They talk about the economic impact and Janet explains why a Nike swoosh-like recovery is more likely than a V-shaped bounce back. 

Highlights from the Investor Evenings 2020

Magellan's annual investor roadshow took place in February and early March 2020, across Australian and New Zealand - 7 cities, 8 nights, over 10,000 advisers and investors attended and more than A$450k was raised for local charities. Hamish Douglass presented 'The Great Repression' in which he shared Magellan's insights on global markets, China in particular, and discussed top holdings in Magellan’s portfolios, Alibaba and Starbucks. Hamish was joined by guest speaker Michael Morell, former Deputy Director of the CIA, who provided some insights into US politics, China and global security threats. Each presentation was followed by a cocktail party. Watch the highlights video for a sense of what the Investor Evenings looked like in person.