In August, Magellan experienced net outflows of $700 million, which included net retail outflows of $600 million and net institutional outflows of $100 million.
Magellan’s retail FUM edged down to $16.0 billion from $16.6 billion the month before, while its institutional FUM remained flat at $21.8 billion.
Meanwhile, global equities FUM slipped in August, down from $14.8 billion to $14.2 billion. Infrastructure equities FUM remained flat at $16.5 billion, while Australian equities FUM also remained at $7.1 billion.
In its full-year results posted to the ASX last month, Magellan reported a 2 per cent increase in adjusted net profit after tax (NPAT) to $177.9 million.
Statutory NPAT was reported to have grown by 31 per cent to $238.8 million, while profit before tax and performance fees for Magellan’s funds management business was down 25 per cent to $158.3 million.
“Magellan has made significant progress in FY24, restoring stability across our business and establishing the foundations for future growth,” Magellan’s executive chairman, Andrew Formica, said.
“Our financial results reflect the resilience of our business following a challenging few years.”
Average funds under management (FUM) over the 2024 financial year stood at $36.8 billion, 25 per cent lower than in the 2023 financial year, when this figure sat at $48.8 billion.
Commenting on Magellan’s FUM seesaw over the past year, Formica said last month: “Net flows have continued to stabilise in both retail and institutional channels, and we have secured significant client wins. Particularly pleasing is seeing a return in the institutional channel, demonstrating the confidence new and existing clients retain in Magellan”.
“Importantly, we addressed several legacy issues that have helped to restore stability to the business and position us for future success,” Formica added.
“These include successfully implementing transitional leadership arrangements, resolving the Employee Share Purchase Plan loans for our staff and introducing a new remuneration framework, as well as converting the Magellan Global Fund Closed Class into the Open Class.”
