Magellan sees performance fee improvement in 2H24
Magellan Financial Group has announced its funds under management (FUM) update for the final month of 2024.
In an ASX announcement, the investment manager saw its FUM decrease from $39.1 billion in November to $38.6 billion in December.
It experienced net outflows of $0.4 billion during the month, equally divided between $0.2 billion each in retail and institutional channels. December’s total outflows were unchanged from the previous month.
Total retail FUM for the month was $16.1 billion, while institutional FUM was $22.5 billion.
Magellan’s FUM update for November 2024 saw its FUM mark its highest rise since August 2023 when it rose from $38 billion in October to $39.1 billion.
Breaking it down by asset class, global equities were the only division to see an increase as it rose 0.7 per cent from $14.4 billion to $14.5 billion.
Infrastructure equities fell by 2.4 per cent from $17 billion to $16.6 billion, alongside Australian equities that dropped by 2.6 per cent from $7.7 billion to $7.5 billion.
Additionally, the company said that Magellan funds will pay distributions of approximately $0.6 billion in January, meaning this will be reflected in January 2025’s FUM figures.
Looking at performance fees, it estimated these will be $6 million for the six-month period compared to “immaterial” fees for the same period a year ago. For the 2023–24 financial year, the company paid fees of $19 million.
For the six months ending 31 December 2024, Magellan’s average FUM was at $38 billion. This was an improvement of 3 per cent from the average FUM of $36.9 billion for the prior corresponding period.
In its FY24 results last August, the firm announced it would be acquiring a 29.5 per cent stake in parent company Vinva Holdings.
Later in October, it launched its first two funds with Vinva for the Australian market, namely, the Vinva Australian Equity Fund and the Vinva Global Equity Fund, both of which are long-only systematic equity strategies.
Magellan then confirmed the launch of the Vinva Australian Alpha Extension Fund in December, a 130:30 long-short strategy designed to provide investors with enhanced returns through a systematic and diversified approach.
This marked the first time Magellan brought a long-short product to market, according to managing director, Sophia Rahmani.
“The launch of the Vinva Australian Alpha Extension Fund is reflective of the deepening relationship between Vinva and Magellan. It’s the first time we’ve brought a long-short product to market, and our distribution team has witnessed a strong positive response from clients when explaining Vinva’s investment process and differentiation,” she said at the time.
AUTHOR
Jasmine Siljic
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