Magellan has seen outflows of $1.5 billion because of three institutional clients rebalancing and the switch of its High Conviction Trust to an active exchange traded fund (ETF).
In an announcement to the Australian Securities Exchange (ASX), it said funds under management (FUM) were $113.3 billion. This was down from $117.9 billion at the end of the previous month.
The largest change was seen in its global equities division which decreased from $88.4 billion in August to $84 billion.
The firm said the outflows were divided by net retail outflows of $617 million and institutional outflows of $910 million.
“In relation to the net institutional outflows, $1 billion of outflows were the result of three clients rebalancing their portfolios across global equities ($410 million), infrastructure equities ($410 million) and Australian equities ($180 million),” it said.
“All three clients were retained, each with mandates in excess of $2 billion with Magellan at the end of September 2021.”
The second cause was the decision to move the High Conviction Trust away from a listed vehicle and into an active ETF. At the time of the move, the firm said it hoped this would reduce the trading discount on the trust.
“Approximately 23% of net retail outflows related to redemptions from Magellan High Conviction Trust (MHHT) following the decision to open the fund as an active ETF,” it said.
“MHHT had total FUM of approximately $889 million at 30 September, 2021.”