Magellan steps up to a ‘new level’
Strong ties with the advice industry combined with the listing of its Global Equities Fund on the Australian Securities Exchange (ASX), have seen Magellan Financial Group's profits soar.
The fund manager posted a 41 per cent increase in net profit for the six months to 31 December 2015, with average inflow into the retail business for the period jumping to $214 million, compared to $123 million for the prior corresponding period in 2014.
Announcing the company's $109.3 million net profit for H1, Magellan chief executive, Hamish Douglass, the success was driven by the group's reach into the advice industry, ties with strategic partners, and the launch of the Magellan Global Equities Fund on the ASX.
"We're stepped up to a new level," Douglass said.
"I'm not saying we're going be $200 million every month that will depend on sentiment out there, but the ability to tap retail users and advisers, our research is much broader than it was 12 months ago, and I would argue it probably now is the broadest reach of any fund manager in this country.
"We've got very deep penetration in the independent advice market and that's been built up over many years… [and] now we're getting into an almost unprecedented level of reach and coverage across all the advice and retail landscape."
Douglass reported that the group's average funds under management (FUM) for the period grew by 44 per cent, to $38.8 billion, with $800 million attributed to the Magellan Global Equities Fund and the replica funds on the AMP and BT/Westpac platforms.
AUTHOR
Nicholas O'Donoghue
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