Magellan shares rally as monthly FUM rebounds
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More news: Shares in Magellan Financial Group lifted on the ASX as the investment manager notched a monthly increase in funds under management (FUM) in January.
Magellan shares were up 2.1% to $10.13 by 2pm AEDT, having shed nearly 20% since the fund manager announced the exit of its long-serving head of investments and infrastructure lead Gerald Stack last week.
Jarden, UBS and Morningstar have all warned of impending outflows following Stack's departure. Morningstar said it expects to see roughly $8 billion in outflows from Magellan's infrastructure strategy across FY25 and FY26, representing around 50% of the fund manager's infrastructure FUM and 22% of group FUM.
Magellan FUM adds 1.3% in January
The news: Investment manager Magellan Financial Group reported a return to growth in funds under management (FUM) for the month of January.
The numbers: Magellan's FUM grew 1.3% month over month, from $38.6 billion to $39.1 billion, reversing December's retreat.
Retail FUM lowered 0.6% from $16.1 billion to $16 billion while institutional FUM rose 2.7% from $22.5 billion to $23.1 billion. Both retail and institutional flows were flat for the month.
Global equities FUM was flat at $14.5 billion, infrastructure equities rose 0.6% to $16.7 billion, and Australian equities climbed 2.3% to $7.9 billion.
The context: Magellan's December result marked the fund manager's first monthly decline since August. The company previously said distributions of around $600 million would be paid in January and reflected in the month's FUM figures.
The source: ASX announcement
