At the company’s 2024 annual general meeting, executive chairman Andrew Formica announced that FUM had stabilized, with exits slowing quarter on quarter throughout the financial year.
“We have made significant progress in restoring business stability for our customers, staff and shareholders,” Formica said.
As of September 30, 2024, Magellan’s FUM was $38 billion, higher than the FY 2023-2024 average of $36.8 billion.
This positive momentum was fueled by new customer wins, particularly within the institutional channel, where inflows of approximately $600 million in Q4 FY23-24 and additional inflows in July 2024 demonstrated renewed confidence, Formica said.
Magellan’s strong performance in its global equity strategy, which returned more than 15% in the second half – the highest half-year return since FY20-21 – also contributed to $19 million in performance fees.
“Our goal remains to maintain strong performance across all our strategies consistently over the long term. This is critical to our continued success, adding value to our customers which will, in turn, add value to our shareholders,” the Chairman said.
“Across all areas of the business, we have a high-quality, collaborative, dedicated and entrepreneurial team. We have a client-focused culture and strive to deliver investment excellence to our clients.
Formica highlighted that the strength of Magellan’s operating business, Magellan Asset Management, lies in its investment capabilities in global equities, infrastructure, Airlie and Vinva, supported by a highly reputable distribution team.
He also highlighted the company’s strong brand equity and strategic minority investments in high-quality businesses, including Barrenjoey Capital Partners, FinClear Holdings and Vinva.
He highlighted Vinva as a 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 strength and attractiveness of our platform to leading investment firms and teams like Vinva. It also highlights the unique avenues Magellan has for growth, either through equity investment through our established associate businesses or through wholly owned opportunities,” the Chairman said.
“Both pathways allow investment firms to access and benefit from our robust operations and broad global distribution platform and demonstrate that Magellan can become a diversified financial services provider of choice and thereby enhance the product offering high quality that we offer to our customers,” he said. said.
Looking ahead, Formica expressed optimism about the new management led by Sophia Rahmani, who was named Magellan’s chief executive in May 2024 and will become CEO in six months.
With expansion plans underway, Magellan, he said, appears well positioned to capitalize on this positive change and rebuild its reputation as a trusted wealth management partner.
“While we recognize the road ahead, we are encouraged by the progress we are making and believe our business is strategically poised for future growth and to generate shareholder returns through the actions we have taken over the past year. “past year,” Formica said. .
“Our profitable business and financial strength give us the firepower to execute on our growth agenda while continuing to generate strong cash flows that support the generation of attractive dividends for shareholders. »
