Consistent growth seen in Magellan FUM

Magellan fund flows Andrew Formica Sophia Rahmani

7 March 2024
| By Laura Dew |
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Magellan has reported a funds under management increase, rising to $37.2 billion in February.

In an update to 29 February, the asset manager said FUM was $37.2 billion, up 2.4 per cent from the previous month. 

Both channels reported an increase: retail rising from $17 billion to $17.7 billion, and institutional rising from $19.5 billion to $19.3 billion.

The firm said Magellan experienced net outflows of $0.2 billion during the month, divided equally between net retail and net institutional outflows. 

This is the fourth consistent month that the firm has reported inflows after several months of outflows reaching a low of $34.3 billion in October 2023.

Looking at asset classes, the largest rise was seen in its global equities arm which rose from $15.5 billion to $16.4 billion, a rise of 5.8 per cent, while a smaller rise was seen in its Airlie Australian equities division which rose from $5.2 billion to $5.3 billion. 

Infrastructure equities declined slightly from $15.6 billion to $15.5 billion. 

The firm had previously been targeting a return to $100 billion in FUM within five years, but this target was scrapped in November after the departure of chief executive David George. 

“While not necessarily targeting $100 billion in assets under management – AUM really is an outcome of delivering for our clients rather than a strategic goal – the underlying premise of the strategy remains, that is to leverage our strong existing platform across investment, distribution and operations to diversify the business and increase the strong investment talent we have in the business, enabling us to deliver on our commitment to grow the wealth of our clients,” executive chairman Andrew Formica said.

In its half-year results last month, the firm announced it has appointed Sophia Rahmani, former CEO of Maple-Brown Abbott, as its new managing director to replace David George and she will join in May. 

She will initially hold the managing director role with the intention to transition into a chief executive role within 12 months. 

Formica, who joined the asset manager last July, will remain as executive chairman until Rahmani takes on the CEO role, at which point he will move into a non-executive role.

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