Magellan takes FUM hit in August

Magellan has reported $1.3 billion of net outflows as at 31 August.

The fund manager confirmed the figure on Tuesday (6 September), which was made up of $600 million in net retail outflows and $700 million institutional outflows.

FUM again fell in August to $57.6 billion from $60.2 billion reported in July.

Retail outflows were also down from $22.6 billion to $21.4 billion in August, as were institutional outflows from $37.6 billion to $36.2 billion.

Meanwhile, global equities FUM also decreased to $30.7 billion and infrastructure equities dipped to $18.5 billion.

However, Magellan confirmed a slight spike in Australian equities FUM, reporting $8.4 billion for August, up on the $8.3 billion in July.

The update comes after Magellan released its full-year financial results last month, in which it reported a 9 per cent drop in average FUM.

Magellan revealed its adjusted net profit after tax sunk 3 per cent on the year to $399.7 million, while profit before tax and performance fees for the Funds Management business ended at $470.6 million or 11 per cent down on the prior year impacted by investment performance and client outflows impacting management and service fees.  

Average funds under management (FUM) for the full year was $94.3 billion, compared to $103.7 billion last year, and total FUM was $61.3 billion at the end of the reporting period.

The company declared a dividend of 68.9¢ per share for the first six months to 30 June 2022, bringing total dividends for FY22 to 179.0¢ per share.

“Whilst it has been a difficult year for the business, we delivered a number of capital management initiatives that we believe are consistent with our aim to deliver capital efficiency, pay solid dividends and generate attractive returns to shareholders,” said Hamish McLennan, Magellan’s chairman.

“Magellan is highly focused on its core funds management business, and we look forward to the next chapter of the company’s growth under new CEO and managing director, Mr David George,” Mr McLennan added.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.