Institutional outflows lessen at Magellan

Magellan David George Andrew Formica

7 November 2023
| By Laura Dew |
image
image
expand image

Magellan experienced outflows of $800 million in October to bring total funds under management to $34.3 billion.

In its monthly update, the firm said total funds under management were $34.3 billion, down from $35 billion in the previous month. 

Outflows were divided between $0.5 billion from the institutional channel and $0.3 billion from retail investors. 

However, this was an improvement on September’s figures when institutional outflows were $1.7 billion which caused institutional FUM to fall by more than 12 per cent from $21.5 billion to $18.8 billion.

As a result of the October outflows, institutional FUM fell from $18.8 billion to $18.2 billion and the retail FUM fell slightly from $16.2 billion to $16.1 billion.

Breaking it down by asset class, global equities fell from $15.3 billion to $15.2 billion, infrastructure equities fell from $15.1 billion to $14.8 billion, and Australian equities saw the largest fall of 6 per cent from $4.6 billion to $4.3 billion. 

At the start of 2023, Magellan’s FUM was $45.3 billion so this year has represented a loss of $11 billion so far, but this is more muted than in 2022 when the exit of Hamish Douglass prompted losses from $95.4 billion to $45.3 billion, a halving of its assets.

October saw the fund manager lose its chief executive and managing director as David George, who held the role for just over a year, left with immediate effect

In a statement to the ASX, executive chair Andrew Formica said: “The board, in consultation with David, believe it is time to refocus leadership which will accelerate the progress made to date. The board remains focused on the delivery of exceptional investment performance and are well positioned to continue to explore organic and inorganic growth opportunities. 

“I am personally committed to the task of leading Magellan until such time a new CEO can be appointed.”

George was brought on board in May 2022 from the Future Fund, receiving a base salary of $1.8 million, as the asset manager looked to rebuild in the wake of Hamish Douglass’ temporary leave of absence.

His role was later expanded to include chief investment officer in October 2022 but he stepped back from the role in August 2023.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 7 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 5 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 8 hours ago