Magellan sees third month of FUM gains

Magellan Andrew Formica David George fund flows

7 February 2024
| By Laura Dew |
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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 202324 financial year on 15 February. 
 

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