Net profit after tax (NPAT) has fallen 33% at Magellan Financial Group but funds under management (FUM) have risen by 9% to $103.7 billion.
In its full year results released to the Australian Securities Exchange (ASX) for the year to 30 June, the firm said its NPAT was $265 million, down from $396 million at the end of June 2020.
Profit before tax and performance fees of the fund management business rose 10% from $477 million to $526 million which chief executive, Brett Cairns, said reflected the increase in average FUM and cost efficiencies.
Average FUM rose 9% to pass $100 billion, increasing from $95.5 million to $103.7 billion.
Changes during the year included the launch of the MFG Core Series, the Magellan Sustainable fund and Magellan Future Pay as well as backing strategic investments in FinClear, Guzman y Gomez and Barrenjoey Capital Partners.
Dividends for the full year were 211.2 cents per share (CPS), down from 214.9 CPS in 2020 and the company also announced the introduction of its dividend reinvestment plan which would enable shareholders to reinvest all or part of their dividends at a small discount to market price.
Eligible shareholders would have until 7 September to opt to participate in the scheme.