Magellan’s FUM drops $1.3bn
Fund management house Magellan Financial Group has reported further significant outflows, after another $1.3bn was redeemed from its strategies in August.
An announcement to Australian Securities Exchange revealed that Magellan’s funds under management (FUM) stood at $57.6 billion at the end of August, down from $60.2 billion one month earlier.
Magellan has faced a challenging year, following a period of underperformance from its funds, the departure of founder and former investment chief Hamish Douglass, the surprise exit of a former CEO and heavy outflows.
August’s $1.3 billion net outflow came from $600 million of retail withdrawals and $700 million of institutions redemptions.
Magellan’s global equities FUM dropped from $33 billion to $30.7 billion last month while global equities fell from $18.9 billion to $18.5 billion. Australian equities rose slightly, from $8.3 billion to $8.4 billion.
In June, new Magellan CEO, David George, said in the group’s 2022 annual report: “The past year has seen the company undergo a period of significant change and transformation. Changes to Magellan’s leadership team and personnel, as well as relative underperformance in the global equities strategy, have impacted client confidence and contributed to a period of declining funds under management and profitability.
“I acknowledge that this year’s events are not what you would have expected. It has only been a few short weeks since I joined the company, but I want to convey to you that I am acutely aware of the challenges, as is the Magellan board and indeed the entire Magellan team. We are committed to improving investment returns and, in doing so, restoring stability, confidence and shareholder value.
“Despite recent changes, Magellan’s goal of protecting and growing its clients’ wealth remains undiminished. My initial impressions are of a professional, energetic and committed team with a tremendous pride to deliver for our clients. I am looking forward to working with the team in service of this goal.”
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