Magellan Financial Group has issued a funds under management (FUM) update for the first month of 2022, reporting total monthly FUM growth of 2%.
FUM grew from $45.3 billion as at 31 December 2022 to $46.2 billion as of the close of January 2023.
Institutional investors contributed to the lion’s share of FUM growth, up 3% from $26.4 billion to $27.2 billion over the same period.
When assessed by asset class, Magellan’s Australian equities portfolio posted the largest month-on-month growth, growing 5.8% from $8.5 billion to $9 billion.
FUM growth across the global equities and infrastructure equities portfolios was less pronounced.
The total value of global equities managed by Magellan rose 1%, from $20.6 billion to $20.8 billion; while infrastructure equities increased by 1.2%, from $16.2 billion to $16.4 billion.
However, the FUM growth was offset by net outflows of approximately $500 million.
Most of the outflows came from retail investors, who reclaimed approximately $300 million in January, while institutional investors withdrew approximately $200 million.
But the January update represented a marked improvement on December, when outflows totalled $2.6 billion.
This resulted in a 9.7% ($4.9 billion) decrease in total FUM, from $50.2 billion as at 230 November, to $45.3 billion as at the end of 2022.
Magellan’s underlying FUM performance follows a sustained period of market volatility, with the equities markets taking a hit over the course of 2022 amid aggressive interest rate tightening from the central banks.
Markets are tipped to stabilise this year as central banks slow the pace of tightening, in line with an easing of inflationary pressures.
