Magellan sees third month of FUM gains
Magellan has kicked off the year with a rise in funds under management, but outflows remain elevated.
In an update to the ASX, the firm said funds under management were $36.3 billion, up from $35.8 billion at the end of December.
This is divided between $17 billion in retail and $19.3 billion in institutional assets, and is the third consecutive month that the firm has seen an FUM rise after a period of heavy outflows.
Retail saw the largest percentage gains, rising by 1.7 per cent from $16.7 billion, while institutional saw a small gain of 1 per cent.
However, while the firm saw an overall rise in FUM, it still recorded outflows, double the net outflows of $0.2 billion seen in December.
“In January, Magellan experienced net outflows of $0.4 billion, which included net retail outflows of $0.2 billion and net institutional outflows of $0.2 billion.”
Breaking it down by asset classes, global equities saw an increase of 4 per cent from $14.9 billion to $15.5 billion and Australian equities increased slightly by 1.9 per cent from $5.1 billion to $5.2 billion.
However, infrastructure equities decreased from $15.8 billion to $15.6 billion.
At the end of 2023, the firm said its average FUM was $36.9 billion between 1 July and 29 December 2023.
This was 31 per cent lower than the average during the second half of 2022 when it stood at $53.8 billion.
It noted it would pay distributions (net of reinvestment) of $0.3 billion in January, and performance fees for the six months ended 31 December were “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. The firm is understood to be conducting a search for a permanent replacement for George.
It is due to report its results for the first half of the 2023–24 financial year on 15 February.
AUTHOR
Laura Dew
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
Active fund managers without a strong distribution platform will be “left behind”, believes Magellan, as it pivots its business away from being a traditional asset manager.
