SJP mandate termination hurts Magellan FUM
Magellan Financial Group has seen outflows of $1.5 billion in the December quarter, in addition to the termination of its largest mandate with St James’s Place.
In an announcement to the Australian Securities Exchange (ASX), the firm said total funds under management fell from $113 billion at the end of September to $95 billion at the end of December 2021.
This was divided between $30 billion in retail and $64 billion in institutional.
A big contributor to this outflow was the termination of a mandate with St James’s Place which accounted for 12% of the firm’s revenue and was its largest mandate. This accounted for $23 billion reduction in institutional funds under management.
Excluding this mandate, global equity outflows were $256 million, infrastructure equities were $215 million while Australian equities saw inflows of $12 million.
Magellan was entitled to $11 million in performance fees for the six months to 31 December 2021 while the firm would pay distributions (net of reinvestment) of $416 million in January.
AUTHOR
Laura Dew
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
