SJP mandate termination hurts Magellan FUM
Magellan Financial Group has seen outflows of $1.5 billion in the December quarter, in addition to the termination of its largest mandate with St James’s Place.
In an announcement to the Australian Securities Exchange (ASX), the firm said total funds under management fell from $113 billion at the end of September to $95 billion at the end of December 2021.
This was divided between $30 billion in retail and $64 billion in institutional.
A big contributor to this outflow was the termination of a mandate with St James’s Place which accounted for 12% of the firm’s revenue and was its largest mandate. This accounted for $23 billion reduction in institutional funds under management.
Excluding this mandate, global equity outflows were $256 million, infrastructure equities were $215 million while Australian equities saw inflows of $12 million.
Magellan was entitled to $11 million in performance fees for the six months to 31 December 2021 while the firm would pay distributions (net of reinvestment) of $416 million in January.
AUTHOR
Laura Dew
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