In August, Magellan recorded net outflows of $700 million, including retail net outflows of $600 million and institutional net outflows of $100 million.
Magellan’s retail FUM fell slightly to $16.0 billion from $16.6 billion the previous month, while institutional FUM remained stable at $21.8 billion.
Meanwhile, the FUM of global stocks fell in August, from $14.8 billion to $14.2 billion. The FUM of infrastructure stocks remained stable at $16.5 billion, while the FUM of Australian stocks also remained at $7.1 billion.
In its annual results released 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 risen 31 per cent to $238.8 million, while profit before tax and performance fees from Magellan’s fund management business was down 25 per cent to $158.3 million. dollars.
“Magellan made significant progress in FY24, restoring stability across our business and establishing a foundation for future growth,” said Magellan Executive Chairman Andrew Formica.
“Our financial results reflect the resilience of our business after a few difficult years. »
Average funds under management (FUM) in FY 2024 were $36.8 billion, 25% lower than in FY 2023 when the figure was $48. 8 billion dollars.
Commenting on Magellan’s FUM shift over the past year, Formica said last month: “Net flows continued to stabilize across both retail and institutional channels, and we achieved significant customer wins. It is particularly pleasing to see a return to the institutional channel, demonstrating the confidence that new and existing clients retain in Magellan.”
“Importantly, we resolved several legacy issues that helped restore stability to the business and position us for future success,” Formica added.
“These include the successful implementation of leadership transition arrangements, the resolution of share purchase plan loans for our staff and the introduction of a new remuneration framework, as well as the conversion from the closed category of the Magellan Global Fund to the open category. »
