Magellan posts results
Funds manager Magellan Financial Group has announced its end of year report, with net profit after tax of $6.2 million, an increase of 147 per cent over the previous year.
In a statement released by the group, the reported full year profit was not reflective of the underlying results as it included a non-cash accounting adjustment that increased the reported profit after tax by $26.6 million, a write off of goodwill relating to the internalisation of the management services agreement between NPH Funds and Magellan that reduced the reported profit after tax by $18.6 million, and another non-cash accounting adjustment that increased the reported profit after tax by $2.2 million.
The group reported unrealised mark to market losses after tax of approximately $2.4 million on investments held by Magellan and a consolidated unit trust.
Underlying operating results for 2008 stood at a loss after tax of approximately $1.6 million, while total revenue from ordinary activities went down 7.7 per cent to $6.529 million.
The group’s directors stated that 2008 was a particularly challenging year for funds management, both in terms of absolute investment returns and funds flow, but are “comfortable that Magellan is well placed to attract funds under management in 2009 and beyond”.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
