Magellan sees institutional inflows in August
In its first funds under management (FUM) update since releasing its full-year results, Magellan has announced its retail and institutional flows during August.
The asset manager said total FUM in August was $39 billion, down slightly from $39.2 billion in the previous month.
Net outflows were $0.3 billion, which included net retail outflows of $0.4 billion and net institutional inflows of $0.1 billion.
This meant total FUM in the institutional channel rose slightly from $21.4 billion to $21.5 billion while retail FUM fell by 1.6 per cent from $17.8 billion to $17.5 billion.
Looking at the specific asset classes, both global and Australian equities saw increases to their FUM. Global equities, which include its flagship Magellan Global Fund, rose from $18.5 billion to $18.6 billion while Australian equities rose from $4.6 billion to $4.7 billion.
The Australian equities division had seen outflows in the first half of the year after the departure of John Sevior who founded Magellan’s Australian equity affiliate, Airlie.
Infrastructure equities, led by head of investments Gerald Stack, fell by 2.4 per cent from $16.1 billion to $15.7 billion.
In its most recent financial results, the asset manager said total FUM had almost halved during the latest financial year.
FUM was down 48 per cent from $61.2 million a year ago to $39.6 million at the end of June 2023. Magellan said this consisted of $18.3 million in retail and $21.2 million in institutional.
Net profit after tax (NPAT) was $182,655 down from $383,011 at the end of June 2022.
Total revenue was $431 million down from $553 million a year ago.
The firm said its focus is three-fold in delivering stability and improving fund management performance, near-term growth opportunities, and adjacent investing offerings and future growth opportunities from diversifying funds and expanding the depth and breadth of the team.
It also announced several leadership changes with Andrew Formica taking over as a non-executive chair from Hamish McLennan. Formica, who is a former co-CEO of Janus Henderson Group, joined the asset manager in July as a non-executive director.
AUTHOR
Laura Dew
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