At the company’s 2024 annual general meeting, executive chairman Andrew Formica announced that FUM has stabilised, with outflows slowing quarter by quarter throughout the financial year.
“We have made significant progress in restoring stability to the business for our clients, staff and shareholders,” Formica said.
As of 30 September 2024, Magellan’s FUM stood at $38 billion, higher than the average for FY2023–24 of $36.8 billion.
This positive momentum has been driven by new client wins, particularly within the institutional channel, where inflows of approximately $600 million in Q4 FY23–24 and further inflows in July 2024 demonstrated renewed confidence, Formica said.
Magellan’s strong performance in its global equities strategy, which delivered over 15 per cent in the second half of the year – the highest half-yearly return since FY20–21 – also contributed to $19 million in performance fees.
“Our focus remains on sustaining strong performance across all of our strategies consistently over the long term. This is critical to our ongoing success, adding value to our clients which will, in turn, add value to our shareholders,” the chairman said.
“Across all parts of the business we have a high-quality team, who are collaborative, dedicated and entrepreneurial. We have a client-first culture and are focused on delivering investment excellence to our clients.”
Formica emphasised that the strength of Magellan’s operating business, Magellan Asset Management, lies in its investment capabilities across global equities, infrastructure, Airlie, and Vinva, supported by a highly regarded distribution team.
He also highlighted the firm’s strong brand equity and strategic minority investments in high-quality businesses, including Barrenjoey Capital Partners, FinClear Holdings, and Vinva.
He noted that Vinva was a major highlight for Magellan this year, with the announcement of a strategic partnership with the investment manager in August.
“This is an important development for the future of our business and highlights the embedded strength and attractiveness of our platform to leading investment firms and teams like Vinva. It also highlights the unique pathways available to Magellan for growth through either investment in stakes via our established associates business or via wholly owned opportunities,” the chairman said.
“Both pathways allow investment firms to access and benefit from our strong operations and extensive global distribution platform and demonstrate that Magellan can become a diversified financial service provider of choice and enhance the high-quality product offerings we bring to clients in doing so,” he said.
Looking ahead, Formica expressed optimism with new leadership under Sophia Rahmani, who was appointed managing director of Magellan in May 2024 and will transition to CEO in six months.
With expansion plans underway, Magellan, he said, appears well-positioned to capitalise on this positive shift and rebuild its reputation as a trusted wealth management partner.
“While we acknowledge the journey ahead, we are encouraged with the progress we are making and believe our business is strategically poised for future growth and to deliver returns for shareholders as a result of the steps we have taken over the past year,” Formica said.
“Our profitable business and financial strength provide us with the firepower to execute on our growth agenda whilst continuing to generate strong cash flows that support the generation of attractive dividends to shareholders.”
