Magellan FUM flat as firm launches 2 funds
Magellan Financial Group reported funds under management (FUM) remained unchanged in October at $38 billion.
In a monthly update to the ASX, the fund manager said FUM was flat at $38 billion in October, unchanged from September.
This was divided between $15.7 billion in retail assets and $22.3 billion in institutional assets.
The firm said net outflows were $0.3 billion during the month, which included net retail outflows of $0.2 billion and net institutional outflows of $0.1 billion. This was slightly up from $0.2 billion in September which was all driven by retail investors.
Looking at the asset classes, FUM in global equities rose slightly from $13.9 billion to $14 billion and Australian equities, which includes Airlie Funds Management, remained flat at $7.3 billion. FUM in infrastructure equities declined slightly from $16.8 billion to $16.7 billion.
Since the start of the new financial year, FUM has risen by 3.8 per cent from $36.6 billion to $38 billion. The largest outflows so far were reported in August when it saw outflows of $0.7 billion after the conversion of the Magellan Global Fund closed class units into open class units.
In its global equities division, the firm announced during the month that it has launched a new global equity fund in association with Vinva Investment Management.
The strategic partnership with Vinva was announced in August at the firm’s FY24 results, with Magellan acquiring a 29.5 per cent stake in parent company Vinva Holdings.
Vinva manages active systematic equity strategies across Australian and global equity markets, having been founded in 2010 by Morry Waked.
At the firm’s annual general meeting on 22 October, managing director of Magellan Asset Management, Sophia Rahmani, announced the launch of the first two funds with Vinva for the Australian market.
These are the Vinva Australian Equity Fund and the Vinva Global Equity Fund, both of which are long-only systematic equity strategies.
A third fund – Vinva Australian Alpha Extension Fund – will be a 130:30 long-short strategy that is set to be launched in November.
“Each of these funds provides retail and wholesale investors access to Vinva’s investment capabilities and are in areas where we see significant client demand,” Rahmani said.
AUTHOR
Laura Dew
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