Magellan FUM drops below $40bn
Magellan's funds under management (FUM) have fallen below $40 billion at the end of the financial year.
In an ASX statement, the firm said funds under management were $39.7 billion at the end of June, down from $41.4 billion in May.
Institutional outflows returned after a lull in May with net institutional outflows of $1.7 billion and net retail outflows of $0.4 billion. They had been flat during May for the first time in a year compared to outflows of $2 billion in the previous month.
Looking at sectors, global equities fell from $20.4 billion to $19.1 billion and infrastructure equities fell from $16.6 billion to $16.1 billion.
Australian equities, which have fallen heavily in the past quarter following the departure of Airlie founder John Sevior, saw a slight increase from $4.4 billion to $4.5 billion, returning to its May figure.
The firm said it will pay distributions (net of reinvestment) of approximately $0.3 billion in July.
Magellan is entitled to estimated performance fees of approximately $11 million for the year ended 30 June 2023. Performance fees (if any) may fluctuate significantly from period to period, the firm said.
The figure includes performance fees of $0.1 million that were previously disclosed in the firm’s interim financial report in December 2022.
The $11 million figure is unchanged from the estimated performance fees in FY21–22.
In May, Magellan chief executive, David George, spoke to Money Management about how he is rebuilding the company and hoping to grow assets back to $100 billion.
This includes creating an environment that is collaborative and encourages staff to speak up.
“We did make a few adjustments,” George said. “We made what was already there work better, rather than change what was there or change people. So, first and foremost, get as much focus as we could onto the existing strategies, making sure we had idea generation working well.
“Like a lot of businesses, particularly ones that had been as successful, you become bigger and you become more complicated. It’s just really simplifying that focus to make sure that it had less entrepreneurial attachments and more focus on really making sure that we got the core bread-and-butter, sticking-to-our-knitting work.”
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Laura Dew
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