MA Financial boosts inflows, remains defensive amid market turmoil
In its latest quarterly update, alternative asset manager MA Financial said it saw a 22 per cent increase in net inflows (ex institutional) to $444 million and is holding onto cash at historically high levels.
Releasing its financial results for the three months to 31 March, the fund manager said net inflows (ex institutional) were up 22 per cent from $365 million a year ago to $444 million.
Gross fund inflows (ex institutional) were $776 million, up 52 per cent from $512 million a year ago.
These strong inflows were offset, however, by the sale of two shopping centres for $310 million, plus $60 million of client income distributions from equity and real estate equity funds following strong fund performance.
In the institutional space, it saw $41 million in net outflows, compared to $2 million in inflows a year ago.
Assets under management were $10.3 billion, up 7 per cent from a year ago, but unchanged from the end of 2024.
During the quarter, the firm listed its MA Credit Income fund on the ASX which provides investors access to a large, diversified portfolio of MA Financial’s flagship private credit strategies that each deliver consistent returns and outperform traditional benchmarks for fixed income investments.
Fundraising for the fund closed early at $330 million due to oversubscribed demand after an initial raise of $290 million.
Regarding the funds itself, MA Financial said it is holding historically high cash levels and being selective in deployment of this.
“Over the last six months, the group’s real estate credit strategies have continued to hold historically high cash levels, with a preference to be highly selective in deployment as opposed to chasing opportunities that may dilute portfolio quality. The group’s diligence with deployment positions it well to capitalise on future opportunities.”
Commenting on the quarterly results, the firm said: “The group acknowledges the emergence of a highly volatile market and operating conditions in recent weeks. There is no discernible direct impact on the business arising from this recent volatility, noting the diversified nature of the group and its positioning in alternative and largely defensive asset classes.
“If market volatility persists for an extended period, then the transactional side of the business, especially corporate advisory, may be impacted as completing transactions is likely to become more difficult.
“Over FY25 to date, including the first half of April, the corporate advisory business has remained highly active.”
AUTHOR
Laura Dew
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