Magellan reports drop in performance fees

Magellan fees performance fees

6 January 2023
| By Laura Dew |
image
image
expand image

Magellan has described performance fees for the six months to 31 December as “not meaningful” compared to $11 million a year ago.

For the six months to 31 December, 2021, performance fees had been $11 million while they had been as high as $30 million for the full year to 30 June, 2021.

In a statement to the Australian Securities Exchange (ASX), the firm did not disclose the exact figure and said: “Performance fees (if any) may fluctuate significantly from period to period”.

Meanwhile, total funds under management (FUM) fell below $50 billion to $45.3 billion after seeing net outflows of $2.6 billion during December.

This included net retail outflows of $0.6 billion and net institutional outflows of $2 billion which brought total funds under management to $45.3 billion.

The biggest loss was seen in a 16% decline in global equities which dropped from $24.6 billion to $20.6 billion.

Infrastructure equities fell from $16.8 billion to $16.2 billion while Australia equities fell from $8.8 billion to $8.5 billion.

Average FUM for the six months ended 31 December, 2022 was $53.8 billion.

Read more about:

AUTHOR

Submitted by Aleycat on Mon, 2023-01-09 15:33

The question is, why are Magellan taking any performance fees when all they've done is lose money for investors and shareholders alike.
If your funds have performed poorly below the index, why are you rewarding yourselves for poor performance ?

I'm not sure but if your funds over the past 12 months don't even mirror the performance of the index, you shouldn't be taking an rewards for poor performance

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Adnan

It is fascinating to see that this year - 2 funds (Mine Super & CFS FirstChoice Employer Super) which failed APRA Perfor...

1 day 10 hours ago
Mitch VB

Thanks for providing us even more work in educating clients on the growth/ defensive splits of all these "top" performer...

1 day 10 hours ago
JohnM

Why would you do that for? It would be a case of the same circus, different clowns....

1 day 16 hours ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

1 week 1 day ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

2 weeks 4 days ago

ASIC has permanently banned a former Western Australia-based financial adviser after he falsified his adviser exam certificate....

1 week 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND