Magellan reports H2 FUM figures

Magellan’s average funds under management (FUM) during the second half of 2023 were $36.9 billion, according to its latest FUM figures.

The $36.9 billion average between 1 July and 29 December 2023 is 31 per cent lower than the average during the second half of 2022 when it stood at $53.8 billion.

FUM at the end of December was $35.8 billion, a small rise of 1.9 per cent from $35.1 billion at the end of November, and the second month of gains for the company after several months of declines. 

It had risen from $34.3 billion to $35.2 billion in November which was the first rise since January 2023.

Retail assets remained flat at $16.7 billion but institutional assets grew 3.2 per cent from $18.5 billion to $19.1 billion.

The firm experienced net outflows of $0.2 billion overall, some $0.3 billion from retail investors and $0.1 billion from institutional investors. Retail outflows were unchanged from the previous month but the institutional figure is down from $0.7 billion in November.

Global equities fell slightly from $15 billion to $14.9 billion but infrastructure equities and Australian equities grew by 1.9 per cent and 8.5 per cent respectively.

It noted it will pay distributions (net of reinvestment) of $0.3 billion in January and performance fees for the six months ended 31 December are “immaterial”.

Magellan is currently managed by executive chairman, Andrew Formica, after former chief executive, David George, departed the firm with immediate effect at the end of October 2023.