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Insto client withdrawals impacts Magellan FUM
Funds under management at Magellan Financial Group declined by $3.6 billion in September to $50.9 billion.
In an announcement to the Australian Securities Exchange (ASX), the asset manager said this comprised of net retail outflows of $0.4 billion and net institutional outflows of $3.2 billion.
The figure was a 55% decline from its FUM back in September 2021 when assets stood at $113.3 billion.
However, the firm said the outflows this month were due to both market volatility in markets and withdrawals by a specific institutional investor.
“Approximately half of the institutional outflows relate to the liquidity requirements of a client impacted by global market volatility in late September.”
Magellan reiterated the firm in question was “still invested in Magellan in some capacity”.
Its global equity division saw the biggest decline last month, falling from $30.7 billion in August to $26.1 billion, a decline of 15%. It had previously noted that its Global Equity strategy had underperformed relative to the market over the past 18 months and this was being addressed by its managers.
Infrastructure fell from $18.5 billion to $16.8 billion and Australian equities fell from $8.4 billion to $8 billion.
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