Magellan reaches highest FUM in 15 months
Magellan has seen its funds under management (FUM) rise to the highest volume since August 2023, surpassing $39 billion.
In a monthly FUM update to the ASX, the asset manager saw FUM rise from $38 billion in October to $39.1 billion in November. This is the highest FUM since August 2023.
However, it reported outflows of $0.4 billion during the month, equally divided between $0.2 billion each in retail and institutional channels. The sum was slightly up from October, when outflows of $0.3 billion led FUM to remain unchanged.
Total retail FUM was $16.2 billion, up from $15.7 billion, while institutional FUM was $22.9 billion, up from $22.3 billion.
When FUM was divided between asset classes, all divisions reported an increase in FUM this month. The largest growth was seen in the Australian equities division, which includes funds run by Airlie Funds Management, which grew by 5.4 per cent from $7.3 billion to $7.7 billion.
Infrastructure equities rose 1.8 per cent from $16.7 billion to $17 billion, while the flagship global equities sector rose 2.8 per cent from $14 billion to $14.4 billion.
Since the start of the new financial year, total FUM has risen 6.6 per cent from $36.6 billion to $39.1 billion, helped by a strategic partnership 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.
Three funds have been launched with Vinva so far: Vinva Australian Equity, Vinva Global Equity, and the firm’s first long-short 130:30 fund Vinva Australian Alpha Extension.
“The launch of the Vinva Australian Alpha Extension Fund is reflective of the deepening relationship between Vinva and Magellan. It’s the first time we’ve brought a long-short product to market, and our distribution team has witnessed a strong positive response from clients when explaining Vinva’s investment process and differentiation,” managing director Sophia Rahmani said.
“Vinva is a great example of the high-calibre teams and opportunities we can attract to our platform and is a key pillar in our diversification strategy, which is gathering momentum.”
AUTHOR
Laura Dew
Recommended for you
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
