Magellan YTD outflows pass $18b

8 April 2022
| By Laura Dew |
image
image
expand image

Magellan Financial Group has seen net outflows of more than $1 billion in March as the continued absence of Hamish Douglass weighs on the firm.

In an announcement to the Australian Securities Exchange (ASX), the asset manager said funds under management were $70 billion as at 31 March, 2022.

Assets were divided between $25.7 billion in retail and $44.3 billion in institutional assets.

“Magellan has experienced net outflows of $1.1 billion from the most recent update of 11 March, 2022 to 31 March, 2022, which comprised net retail outflows of $0.5 billion and net institutional outflows of $0.6 billion.

“In addition, Magellan has received notifications of intention to redeem of $0.2 billion which is reflected in the FUM figures.”

In total, net outflows for the March quarter were $18.1 billion, which comprised $12.9 billion of redemptions and $5.2 billion in notifications of intentions to redeem, the firm told Money Management.

Its share price had fallen 9.4% since the start of the year however, it had improved in the past month, rising 36% over the month to 07 April.

Douglass, who co-founded the company and had been working as chair and chief investment officer, temporarily left the firm at the start of February to take a medical leave of absence.

No date had yet been set for his return to the business and he had formally resigned from the board.

The company announced it had introduced a retention program for staff around bonuses and share purchase plans which would be subject to their continued employment which would be vested in September 2024.

Kristen Morton, interim chief executive of Magellan, said: “Magellan’s employees are exceptional. They have been working tirelessly in what has been a challenging period. The staff retention initiatives comprise part of Magellan’s overall goal to be an employer of choice for our employees and provide excellent service to our clients”.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago