Magellan YTD outflows pass $18b
Magellan Financial Group has seen net outflows of more than $1 billion in March as the continued absence of Hamish Douglass weighs on the firm.
In an announcement to the Australian Securities Exchange (ASX), the asset manager said funds under management were $70 billion as at 31 March, 2022.
Assets were divided between $25.7 billion in retail and $44.3 billion in institutional assets.
“Magellan has experienced net outflows of $1.1 billion from the most recent update of 11 March, 2022 to 31 March, 2022, which comprised net retail outflows of $0.5 billion and net institutional outflows of $0.6 billion.
“In addition, Magellan has received notifications of intention to redeem of $0.2 billion which is reflected in the FUM figures.”
In total, net outflows for the March quarter were $18.1 billion, which comprised $12.9 billion of redemptions and $5.2 billion in notifications of intentions to redeem, the firm told Money Management.
Its share price had fallen 9.4% since the start of the year however, it had improved in the past month, rising 36% over the month to 07 April.
Douglass, who co-founded the company and had been working as chair and chief investment officer, temporarily left the firm at the start of February to take a medical leave of absence.
No date had yet been set for his return to the business and he had formally resigned from the board.
The company announced it had introduced a retention program for staff around bonuses and share purchase plans which would be subject to their continued employment which would be vested in September 2024.
Kristen Morton, interim chief executive of Magellan, said: “Magellan’s employees are exceptional. They have been working tirelessly in what has been a challenging period. The staff retention initiatives comprise part of Magellan’s overall goal to be an employer of choice for our employees and provide excellent service to our clients”.
AUTHOR
Laura Dew
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
