Magellan approaches $40bn, but performance fees decline
Magellan has closed out the financial year with funds under management (FUM) of $39.6 billion.
Over the last 12 months, FUM has risen slightly by 8 per cent from $36.6 billion at the start of the financial year.
It is the third consecutive month of positive flows for the fund manager, meaning the asset manager saw consistent growth for the final quarter of the financial year.
It said it is entitled to estimated performance fees of $11 million for the 2024–25 financial year and will pay distribution (net of reinvestment) of approximately $0.5 billion in July.
For the 2023–24 financial year, it had paid performance fees of $19 million and distributions of $0.2 billion.
During the month, outflows were concentrated exclusively in the retail channel which saw $0.2 billion in outflows while institutional ones were unchanged.
Retail FUM rose from $16.7 billion to $16.8 billion, while institutional ones rose from $22.6 billion to $22.8 billion.
Breaking it down by asset class, global equities were unchanged from May at $13.5 billion and infrastructure equities were down from $16.6 billion to $16.4 billion.
July will see the exit of the infrastructure head and head of investments Gerald Stack after 18 years, a departure that was flagged by the fund manager back in January. However, infrastructure FUM has been largely unaffected by the announcement and is down by less than 2 per cent since the news, despite industry concerns of large outflows.
Magellan said Stack had enacted a “textbook succession plan” upon his exit and had internally appointed Ben McVicar to lead the infrastructure investment team.
FUM in its Airlie Australian equities division were up from $7.7 billion to $8 billion, while FUM in its new Vinva Systematic Equities division were up from $1.5 billion to $1.7 billion.
Magellan first announced its strategic partnership with Vinva in August last year at its FY24 results, with Magellan acquiring a 29.5 per cent stake in parent company Vinva Holdings. Magellan said at the time that the two firms intended to collaborate on new product initiatives in Australia and globally.
Since then, it has launched four funds with the firm: Vinva Australian Equity, Australian Alpha Extension, Global Equity, and Global Alpha Extension.
AUTHOR
Laura Dew
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