Magellan shares up 16% as firm announces improved profits
Magellan has announced a 24% in net profit after tax to $251.6 million, causing shares in the financial group to rise 16%.
Announcing its half-yearly results to the 31 December, 2021 to the Australian Securities Exchange (ASX), the firm said net profit after tax was $251.6 million, a 24% rise from a year ago when it was about $202 million.
Average funds under management were $112 billion, up 12% from $100.9 billion a year ago. However, they had since declined to $87 billion in February after chair Hamish Douglass took a leave of absence.
Performance fees were $11.5 million, down 8% from $12.4 million a year ago.
Kirsten Morton, interim chief executive, said: “Magellan has faced a number of challenges over recent months, however the group remains in a robust financial position and has delivered strong financial results for the period.
“We are focused on our core management business and delivering upon our investment objectives for our clients.”
Shares in the firm were up 16% on the news, however they remained down 53% over the past six months.
The firm declared an interim dividend of 110.1 cents per share but suspended the dividend reinvestment plan from 18 February and participants would instead receive cash dividends. It was also considering an on-market share buyback.
Recommended for you
The role of alternative investments is to diversify a portfolio and capture differentiated sources of return, according to UBS Asset Management.
Private investment opportunities are moving up on the list of what investors want from their financial advisers, according to Natixis IM, and over half of firms say they are offering them more strategies.
Two asset managers have each expanded their product suite with the launch of new global equity funds for Australian investors.
Perpetual has confirmed it is in exclusive talks with global investment company KKR regarding an acquisition of its corporate trust and wealth management businesses.