Operational Briefing Presentation to Investors and Analysts 9 February 2021 - Macquarie Asset Management
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Operational Briefing Presentation to Investors and Analysts 9 February 2021
Macquarie Asset Management Martin Stanley Group Head
MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
26
MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Through our specialist investment expertise across public and private
markets, we empower people to innovate and invest for a better future
Public
Alternatives markets
Build relationships and raise capital
Infrastructure Renewables Fixed Income
Invest capital and deliver performance
Real Estate Agriculture Equities
Clients
Develop our people and platform Transportation
Private Credit Multi-asset
Finance
Manage risk and operate efficiently Global solutions
Investing to deliver positive impact for everyone
27MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Actively evolving the platform over time
Acquisition of GLL MAM AUM1 Top 50
Launch of MIDIS
infrastructure
Real Estate Partners Announced
acquisition of
$A550.9b global asset
manager5
debt platform Acquisition of
ValueInvest Waddell & Reed
Launch of listed MAM commits to
REIT in Mexico MSCIF Series 1 Macquarie Infrastructure and Real Assets (MIRA)
final close net zero by 2040
Acquisition of Delaware
Investments
Philippines MEIF5 final close MAIF2 final close Sale of Jackson Square $A137.1b $A25.7b
Investment Fund Partners minority stake EUM1 equity to deploy1
Acquisition of MIM MAIF1 final close Global digital
MAFM transferred to MIGS II final close
(up 277% over ten years)
Austria business MIM Growth team institutional
Mexican Infrastructure
Macquarie Funds
Group and renamed MIP III final close acquisitions experience launch MGIDF final close 14% No.1
Fund final close MIRA Agriculture Launch of MKOF3 MIDF UK I final close MIGS final close MSIG I final close realised asset IRR3 infrastructure manager
globally6
Over the past five years4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $A93.0b $A75.6b $A42.5b
capital capital asset
raised invested divestments9
MCRC1 final close MEIF4 final close MCRC2 final close Acquired UK MQA internalisation Macquarie Investment Management (MIM)
Africa Infrastructure MGCIF final close Sale of Africa Green Investment MEIF6 final close
Fund final close KPCF 1&2 Infrastructure Bank and UK MIP IV final close $A360.6b 86%
Funds platform Offshore Wind Transportation Finance and MacCap AUM1 of funds exceeding
Macquarie SBI capital raising Fund
Infrastructure Fund Real Estate Investments join MAM (up 75% over ten years) ten-year benchmarks2
final close Acquisition of Foresters investment
management business
Top 10 Top 25
Aladdin implementation global insurance actively managed US
asset manager7 mutual fund manager8
MAFCA final close
1. As at 31 Dec 20. 2. Percentage of assets under management outperforming their respective benchmarks on a 10-year basis. Data as at 31 Dec 20. 3. As at 30 Sep 20. Calculated as the annualised return across all infrastructure portfolio businesses realised to third parties, including all equity
investments and realised proceeds. Excludes unrealised returns for infrastructure businesses no longer managed by MIRA funds due to fund level initiatives, such as the restructure or internalisation of management functions, and the sale of management rights. Cash flows are converted to AUD
applying the spot FX rate as at the date of each fund’s acquisition of the relevant portfolio business. Past performance is not indicative of future results. Returns on realised infrastructure businesses represent returns to the applicable fund. The figures or performance, as applicable, do not represent
returns to underlying investors in the funds. Does not reflect management fees, performance fees, taxes and other expenses to be borne by investors in the applicable funds, which may be substantial. 4. Metrics include five years from Jan 16 to Dec 20. 5. P&I Largest Money Managers 2019,
published in Jun 20. 6. IPE Real Assets (Jul/Aug 20). 7. Insurance AUM Journal, 2019 Insurance Asset Management Leaders published 2019. 8. As at 31 Dec 20 - Strategic Insight, Morningstar. 9. Excludes $A2.8b of equity proceeds returned to investors in Jan 21. 28MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Global platform, local presence
Providing access to investment opportunities for our clients and partners.
ASIA-PACIFIC
696 $A154.7b 82
Diverse team of professionals
AMERICAS staff AUM portfolio
companies
44 ~4.7m ha Global staff
723 $A283.2b 30
properties farmland 1,918 39
staff AUM portfolio
companies staff languages spoken
356 37,000 ha
properties farmland
Alternatives investment professionals
310 15 207
infrastructure agriculture real estate
professionals professionals professionals
EMEA
53 15
499 $A112.9b 35 104 private credit transportation finance
professionals professionals
staff AUM portfolio properties
companies
Public markets investment professionals
114 105
TOTALS fixed income equity investment
investment professionals professionals
1,918 $A550.9 147 504 ~4.7m ha 13 2
staff AUM portfolio companies properties farmland multi asset investment alternatives investment
professionals professionals
All data as at 31 Dec 20. 29MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
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Building sustainable value for clients and communities
Leadership in sustainability is driven by our people
Enhancing resilience
of infrastructure
MAM announces ~12.5 GW Signatory since 20151 Geo-hazard early warning systems
net zero by 2040 green generation capacity and weather-resilient cooling towers
at geothermal plant in the Philippines
commitment managed globally
Technology to monitor vegetation
encroachment on power lines to
reduce risk of bushfires in Australia
Under grounding 26,000km of
electricity cables in Finland to
Member since 20162 minimise disruption caused by
extreme weather events
Precision farming techniques being
120,000+ ~100 m used to improve soil health and
employees and contractors people use MIRA-managed combat land degradation in Australia
at MIRA portfolio companies essential services daily Led the construction of flood barriers
prior to taking ownership of an asset
Signatory since 20203 in the United States
All data as at 30 Sep 20. 1. MAM signed the PRI Principles in Aug 15. 2. Infrastructure GRESB member since Apr 16. Real Estate GRESB member since Jun 19. 3. MAM signed Climate Action 100+ in Jul 20. 30MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Resilient performance in the face of COVID-19
Our alternatives portfolio1
Utilities and energy: 38%
Portfolio performance Critical nature of services supports continued
resilience. Electricity demand not materially
has been resilient outside impacted. Continued focus on energy transition
of aviation sector 5% 2%
5%
Digital infrastructure: 13%
6% Remote and flexible work practices supporting
increased usage and demand for connectivity
Activity levels have 9% Transportation (excl. aviation): 12%
remained high across 38% Road traffic has rebounded following earlier impacts.
Port volumes following economic cycle, with resilient
the platform goods sector and normalising trade driving rebound
Real estate: 10%
10% Online shift supporting resilience of logistics/industrial
real estate. Mixed impact on office with WFH offset
Strong fundraising by rising space per worker due to social distancing
activity with $A15.5b
capital raised since Mar 20 Renewables: 9%
Continued generation, albeit with lower power prices
12% 13% in some areas (partially offset by regulatory/revenue
support). Delays to some construction projects due to
Utilities and energy Digital infrastructure supply chains
Flexible working culture Transportation (excl. aviation) Real estate
Aviation: 5%
has ensured team resiliency Renewables Infrastructure debt Airports serving commercial aviation sector
and continued outcomes Other Aviation materially impacted by travel restrictions.
Agriculture Macquarie Air Finance working closely with
customers and stakeholders
1. Based on AUM at 31 Dec 20. 31MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
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Adding value throughout the investment lifecycle
● Long-term investment approach, CASE STUDY
delivering positive outcomes Philippine Coastal Storage & Pipeline
Acquisition
for clients, portfolio companies Corporation
and communities
Supported the development of the
● Boutique active public investments Philippines’ largest oil storage terminal
teams with deep sectoral expertise Exit over a six-year investment
across equities and fixed income.
● Elevated employee health and safety
● Diverse alternatives team with deep Lifecycle practices to international standards
industry and operational experience value
● Put in place senior leadership team
to manage and enhance real creation and governance structure
asset businesses
● Global scale, technical expertise and Transition ● Led numerous expansions, increasing
networks allow us to undertake capacity from 4.7m to 6.0m barrels
increasingly complex transactions ● Optimised capital structure to
● ESG considerations embedded within underpin long-term growth
Optimisation
our investment decision making and ● Generated EBITDA CAGR of 8%
asset management frameworks Divested in Jan 2021, delivering a
28% IRR / 4.0x money multiple
32MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
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A long-term history of growth
MAM NPC
598
550
149
484 480 489
477
128
425
344
325 86
305
77
66 67
2,177
53 1,873
41 1,644
38 1,538 1,558
36 1,450
1,051
755
645
482
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
MAM AUM ($b)
($Ab) MIRA EUM ($Ab)
FY11
33MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Composition of income
Asset Management Net Income (AMNI) Performance-related Income (PRI) Net Other Income (NOI)
Net Net
Base fees on Operating Performance Net operating
- + + investment + + Other income = Profit
EUM / AUM expenses fees lease income
income Contribution
MIRA EUM in
MIRA EUM composition1 MIRA EUM maturity1 Performance fee territory2
12% 18%
27% 35%
Mar 16 Dec 20
88% 73%
82% 65%
Infrastructure Other Alternatives 5 years Within performance fee territory
Out of performance fee territory
Other Alternatives projected to continue to
grow as a proportion of total EUM by FY30
1. Total EUM as at 31 Dec 20. 2. EUM with performance fee structure presently in performance fee territory as at 30 Sep 20. 34MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
MIRA Historical Income
149 % of EUM
$Am
140
1,800 MIRA base fees (LHS) performance-related
MIRA performance fees andincome and net(LHS)
other income other income (LHS) 2.00%
128
Closing MIRA EUM $Ab
1,600 1.80%
1.60%
1,400
1.40%
1,200
77 1.20%
1,000 Base fees 86
Ave: ~100bps; St dev: ~20bps
1.00%
60 58
800 67 Base Fee
53 52 66
0.80% Ave: ~90bps since FY17
600 39 39 41
Performance fees 37 0.60%
Ave: ~50bps; ~St dev: 40bps 36
Performance Fees
400 Ave: ~55bps since FY17
Other income 13 0.40%
30 Other Income
Ave: ~25bps; ~St dev: 40bps
10 Ave: ~40bps since FY17
200 7 0.20%
2 2 4
1 1
- 0.00%
FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21
35MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Our risk management approach
Strong risk culture and effective risk management
Disciplined Resilient Risk
Macquarie Asset Management approach risk culture management
has a strong focus on its
fiduciary responsibilities and a A disciplined approach to risk COVID-19 has both tested and We manage a broad range of
client-centric culture embedded management underpinned by a demonstrated the strength of financial and non-financial
strong culture, conduct our risk culture. risks at both the corporate and
in its businesses and senior mindset and control fund level with robust due
Our focus on risk and the
leadership teams environment. interests of our clients and diligence, strong governance,
Risk is owned and managed at stakeholders has continued portfolio management and
the business level with throughout, with staff owning stress testing.
independent oversight risk across our teams and Work health and safety is at the
provided by Macquarie's Risk investments in a rapidly forefront of our asset
Management Group. evolving environment. management strategy.
36MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM Delivering positive impact A focused strategy for the future Ben Way Head of MIRA – Global Alternatives Shawn Lytle Global Head of Macquarie Investment Management
MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Market environment
Search for
alpha and yield
AUM net Allocation Importance of Fee Focus on responsible
inflows diversification technology compression investment
Desire for strategic
partnerships
More than
~80% $US501b US retail represents
$US17t of investment managers global energy transition 31% Increased
alternative assets expect to see greater investment in 20203 of the revenue
AUM by 20252 influence of ESG in opportunity from expectations for
investment practices
by 20251
2020-20244 client experience
1. Preqin Fund Manager Survey 2020. 2. Preqin: The Future of Alternatives 2025, published 2020. 3. BloombergNEF 2021. 4. Excludes passive and subadvisory; MIM organic growth calculation based on observable fund information from Morningstar. Source: Morningstar, Casey Quirk Global
Demand Model, Casey Quirk analysis. 38MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Building on the past and investing for the future
Maintaining momentum with a focused growth strategy
Build on Grow Advance
our leading position our alternatives our public
in infrastructure offerings investments platform
Key enablers
Invest in our Invest in the MAM Keep sustainability Maintain Invest in data
and
people and culture to brand and elevate the at the heart of disciplined risk technology
innovation
foster greater client experience our business management to enable
and growth approach scalable growth
39MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Our infrastructure business
The world’s largest infrastructure equity manager, with a portfolio of investments relied on by more than
100m people each day
Supportive market environment Growth in core strategies with Lifecycle focus on delivering CASE STUDY
Global infrastructure sector AUM expected expansion into adjacencies positive impact
AirTrunk
to be over $US1t1 by 2024 ● Long-term investment approach to
● Continued growth of regional closed
● Pressure on government finances end ‘flagship’ funds deliver positive outcomes for clients, Leading Asia-Pacific hyperscale data centre provider,
creates significant opportunity for portfolio companies and communities capable of delivering a total planned capacity of
● Increased scale of open-end or
private capital ● Exceptional origination and ~750MW across six data centres in five tier one markets
longer term global funds
● Increasing allocations from institutional execution capabilities Macquarie Asia-Pacific Infrastructure Fund 2 (MAIF2)
● Further expansion into new
investors ● Value creation throughout the and its partners reached financial close on the
adjacencies, including new sectors
● Growth in wholesale distribution and geographies ownership period, leveraging our acquisition of an 88% stake in AirTrunk in Apr 20
channels deep investment experience and in-
● Targeted use of balance sheet to Key progress since acquisition:
house industrial expertise and other
Investment opportunities across global catalyse new strategies and for specialist skills ● 300MW+ hyperscale data centre campus launched in
mega-trends: urbanisation, digitalisation alignment with clients Tokyo with an initial 60MW phase targeted to open in
and energy transition late 2021
● Two data centres opened in Singapore and
Hong Kong in Dec 20, with a combined capacity of
more than 80MW
No. 1 $A100.4b $A18.6b ● 110MW+ hyperscale data centre campus launched in
Sydney (second AirTrunk site in Sydney)
Infrastructure equity under of capital to deploy3
● Over $A1b capex deployed since Apr 20
manager globally2 management3
● Range of new contracts signed with major global
Global team of 147 ~12.5GW hyperscale customers
green generation
310 professionals3 portfolio companies3
capacity managed
globally3
1. BCG ‘Protect, Adapt and Innovate May 20’. 2. IPE Real Assets (Jul/Aug 20). 3. At 31 Dec 20. 40MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Our real estate business
Global business with deep networks, broad capabilities and strong track record
Global commercial real estate AUM Global business providing Focused on two key strategies: CASE STUDY
of ~$A5t1 continues to grow investors access to investment ● Core / core-plus
opportunities across the real
LPC
‒ Investing in and
Investor appetite for real estate estate risk-return spectrum US logistics platform
managing office, logistics
remains strong with increasing
and retail assets ● Established in Feb 18, majority owned by MIRA
allocations and attractive yield Experienced team of over 200 that
spread to bonds capitalises on long-term trends to ‒ Driving performance through Real Estate alongside management team
create value for clients and partners: disciplined market selection ● Strategy to create a fully integrated
Global mega-trends are both and active asset management development and investment management
disrupting and accelerating real ● Beds, sheds, bytes, desks
● Opportunistic logistics platform to capitalise on the long-term
estate investment opportunities ● Develop-to-core strategies ‒ Investing in and partnering demand being created by the growth in
● Urbanisation capitalising on attractive with specialist real estate ecommerce
development yield spreads platforms targeting sectors
● Changing demographics and strong sector/ ● ~$US280m balance sheet commitment to
supported by structural
● Digitalisation market fundamentals acquire and warehouse seed portfolio for initial
tailwinds or market dislocation
‘develop-to-core’ venture
● Partnerships with leading ‒ Leveraging principal
global investors in investment track record ● $US1b LPC Venture 1 capital raise completed
management platforms in 2020 with global real estate investors, with a
projected portfolio end value of +$US2.5b
● Since inception, the platform has grown from 11
$A19b ~500 ~210 28 employees to 50 employees today
assets under properties2 real estate locations
management2 specialists2 globally2
1. ~$A5t (EUR 3.2t) AUM has been sourced from the ANREV / INREV / NCREIF Fund Manager Survey 2020 released in Jun 20. 2. At 31 Dec 20. 41MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Our private credit and asset finance businesses
Global businesses with proven track record of matching private market capital to growing asset classes
Private credit Transportation finance
Growing market for private credit funds, with AUM of MAM’s Transportation Finance has a 15-year track CASE STUDY
~$US900b and forecast to grow to ~$US1.5t by 20251 record of investing in movable transportation assets,
including aircraft, rail and helicopter assets
Sub-Investment Grade infrastructure debt
Capital spans the full risk spectrum, from quasi sovereign Strategy
(local government, social housing) to high yield and bank MAM remains committed to the sector and is working
capital relief financings with selected partners for co-investment. With deep ● ~€1.2b raised from institutional investors
experience across markets and through cycles, – of which ~€730m via the flagship
Zero losses or impairments to date the Transportation Finance team is well placed to Macquarie Infrastructure Debt
identify the opportunities which will deliver long-term (Sub-Investment Grade) Fund
Impactful investments are a core part of the business
and include: value to investors ● Invested across the utilities, energy,
● Green energy debt investments that have financed renewables and transport infrastructure
Near term, these markets to benefit from current trends,
over 15GW of clean energy2 sectors
including in particular:
● 22,000+ affordable housing units2 ● Invested in 14 borrowers in the United
● Dislocation in the aviation equity and debt markets,
Kingdom, United States, Italy, Finland,
resulting from COVID-19 disruption
MAM’s Private Credit business is expanding further within and the Netherlands
infrastructure as well as into adjacencies, including ● Transition to lower emissions fuels and
● Majority of assets negotiated on a
Secure Income Real Estate technologies across all transportation sectors
bilateral basis and sourced through
MAM proprietary channels
● Attracted interest from 21 pension funds and
~$A12b 120+ $US5b 300+ insurance companies across the United
Kingdom, Korea, Japan, Italy, and Portugal
assets under investments capital under aviation
management2 management2,3 assets
1. Source: Preqin Future of Alternatives Report Nov 20. 2. As at 31 Dec 20. 3. Capital under management include the total net book value of aircraft and helicopter assets under management. 42MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Our public investments business
Diversified active professionals offering differentiated public investment capabilities across institutional
and retail clients
$A360.6b assets under Strength of global platform Focus on growth CASE STUDY
management6 ● Continuing efforts to globalise Evolving to meet future client needs Waddell & Reed Financial, Inc.
By asset class the business with transformative growth initiatives:
● Leveraging the MAM enterprise ● Advancing additional ● Increased scale and complementary
Equity ($A151.5b)
● Creation of MAM Client specialist active capabilities investment capabilities to the existing
Solutions Group into “flagship” status Delaware Funds by Macquarie mutual
Fixed Income ($A199.3b)
● Inorganic initiatives for fund line-up
● Aladdin live in all major regions
Multi-asset ($A8.7b)
● Significant wins in cornerstone continued business scale ● Strategic partnership with LPL – complements
Alternatives ($A1.1b) markets - Australia Institutional and capability expansion strong existing US wholesale relationships within
● Named Investment Manager of ● Further investments in the independent broker dealer channel, fastest
By region the Year by the Financial technology, data & analytics, growing and largest opportunity
Standard1 and “Best Investment and automation ● Opportunities to grow new product
Americas ($A232.5b)
Manager 2020” by Money ● Focus on investment flagships in one of the largest and fastest
EMEA ($A13.0b) magazine2 in Australia intermediaries and Expansion of growing channels in the US
‘Cornerstone’ channels
Australia ($A107.1b) ● At close of transaction, MAM will become
● Delivering alternatives and non-
Top 25 US mutual fund manager3
Asia ($A8.0b) traditional capabilities to global
retail channels
Top 25 Top 10 Four 86% of funds
actively managed global insurance new product launches and exceeding ten-year
mutual fund manager3 asset manager4 three new investment strategies benchmarks5
1. Investment Manager of the Year 2020 (Australia) at the Financial Standard Investment Leadership awards. 2. Best Investment Manager 2020, Money magazine’s Best of the Best 2020 Awards, (Australia). 3. As of Dec 20. Source: Strategic Insight, Morningstar. 4. Insurance AUM Journal, 2019
Insurance Asset Managers Report, published 2020. 5. Percentage of assets under management outperforming their respective benchmarks on a 10-year basis. Data as at 31 Dec 20. 6. As at 31 Dec 20. 43MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
A compelling combination
Waddell & Reed today Future combination with Macquarie3
Founded in 1937 in Kansas City, Waddell & Reed has been serving the financial Asset Management
needs of families, individuals and businesses for more than 80 years BY ASSET CLASS (AUM $Ab)¹ BY CLIENT CHANNEL (AUM $Ab)¹
Asset management Wealth management 648 648
2%
30%
62%
● Active portfolio management ● National network of financial advisors 33%
across a variety of asset classes providing comprehensive, personal
utilizing proprietary fundamental financial planning services to clients 9%
11% 97 35% 97
research distributed to retail and across the US 18% 5% 29%
71% 37% 58%
institutional clients under the Ivy ● AUA: $A90.5b1
Investment umbrella Whitman + Whitman +
● ~1,3001 advisors and
● AUM: $A97b¹ advisor associates
Macquarie Asset
Management
Macquarie Asset
Management
● ~1002 investment professionals across ● ~4,0002 client accounts across Equity Fixed Income Alternatives Other 4 Institutional Wealth Management (LPL)
PMs, research and investment support advisory and non-advisory Unaffiliated Retail
● Top strategies by AUM: ● ~60% of client assets invested in Ivy
‒ Science & Technology funds, with the balance in variable Long-term partnership
‒ Midcap Growth annuity and other insurance related
‒ Large Cap Growth products as well as unaffiliated funds Wealth management
‒ High Yield Fixed Income
‒ International Core Equity +
1. As at 31 Dec 20. 2. As at 30 Sep 20. 3. Transaction close is subject to regulatory approvals, client consents and other closing conditions. 4. Other includes multi-asset and money market.
44MACQUARIE I OPERATIONAL BRIEFING 2021 I MACQUARIE.COM
UPDATE SINCE THE INTERIM RESULT MACQUARIE ASSET MANAGEMENT MACQUARIE CAPITAL CORPORATE OPERATIONS GROUP APPENDIX
Well-positioned for growth
Global platform providing access to Delivering Investing in our
specialist investment positive outcomes people, culture
expertise for our clients and brand
Build on our Grow our Advance our
leading position presence in public investments
in infrastructure alternatives platform
Investing to deliver
positive impact for everyone
45Operational Briefing Presentation to Investors and Analysts 9 February 2021
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