Troubled fund manager Magellan Financial Group has reported its fourth monthly increase in funds under management (FUM) since January 2023.
In an ASX statement, Magellan reported that it had $37.2 billion in FUM as at 29 February, up from $36.3 billion at the end of January.
During February, Magellan’s retail FUM increased from $17 billion to $17.7 billion, while its institutional FUM rose from $19.3 billion to $19.5 billion.
But the fund manager also confirmed that outflows persisted over the month. Namely, in February, Magellan experienced net outflows of $0.2 billion, which included net retail outflows of $0.1 billion and net institutional outflows of $0.1 billion.
Global equities FUM increased from $15.5 billion to $16.4 billion. Meanwhile, infrastructure equities FUM decreased again from $15.6 billion to $15.5 billion, while Australian equities FUM lifted from $5.2 billion to $5.3 billion.
Magellan’s average FUM for the six months ended 31 December 2023 was $36.9 billion compared to $53.8 billion for the six months ended 31 December 2022.
In February, Magellan revealed its adjusted net profit after tax edged down 5 per cent in the first half of financial year 2024 to $93.5 million, following a 60 per cent drop a year earlier.
The firm also announced several changes, including the appointment of Sophia Rahmani to the role of managing director of Magellan’s main operating subsidiary, Magellan Asset Management Limited, effective in May 2024.
Magellan’s executive chairman, Andrew Formica, said he will remain as the executive chair for an interim period to ensure the firm maintains continuity and stability, focusing his attention on Magellan’s strategic development, while Rahmani focuses on the firm’s funds management business.
“With a new executive leadership structure in place, and a number of legacy issues behind us, including having addressed the Employee Share Purchase Plan loans and the uncertainty around our Magellan Global Fund (Closed Class) (MGF), I am confident the business is in a strong position to rebuild and grow,” Formica said.
In parallel with these “important” steps, Formica said Magellan has made progress on its strategic agenda, which includes a refocused US distribution platform and plans to launch a new product – the Magellan Unconstrained Fund – to retail investor.
Admitting that “more needs to be done” to restore Magellan’s former glory, Formica said the firm remains a “highly profitable business, with robust operating cash flows and significant financial strength in the form of our strong balance sheet”.
“I am encouraged by the progress we are making and am confident our strong foundations position us well to deliver positive outcomes for our clients and shareholders.”
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
