Magellan Financial FY performance fees estimated to fall 43%
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The news: Magellan Financial Group has reported estimated performance fees for financial year 2025 that are 43% lower than the previous year, as it announced a shift from monthly to quarterly assets under management (AUM) updates.
The numbers: The investment group told the exchange that it is entitled to estimated performance fees of approximately $11 million for the financial year ending 30 June 2025.
In August 2024, Magellan reported $19.2 million worth of performance fees for financial year 2024, the highest since financial year 2021.
Distributions of approximately $0.5 billion are expected to be paid in July, which will be reflected in the next assets under management update.
Magellan also said that its assets under management rose 0.76% from $39.3 billion to $39.6 billion in June as the Australian dollar strengthened against the US dollar.
However, it posted net outflows of $0.2 billion. This included net retail outflows of $0.2 billion and flat net institutional flows. The only fund that experience inflows was Vinva Systematic Equities.
The context: The embattled investment manager has endured a challenging period over the last three years as it has suffered investment underperformance, significant outflows and seen departures of several senior management figures.
Earlier this year, Magellan announced that long-serving head of investments and infrastructure portfolio manager Gerald Stack would step down from the roles.
The fund manager has seen steady improvement since 2024 but its current FUM is a fraction of the $113.9 billion corpus it held at the end of FY2021.
Magellan also announced it would transition to quarterly assets under management update, with the first to be released in early October for the quarter ending 30 September.
Magellan said the new format will include additional disclosure on AUM split by strategy and client type as well as quarterly flows and other movements driven by markets or distributions.
Full-year results for the group will be released on 20 August 2025.
