Magellan shares rise on higher fees, steady flows
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More news: Shares in Magellan Financial Group were up more than 4% to $8.92 in early trading on the ASX after the investment manager said its performance fees increased in FY24 and its funds flows were relatively stable in June.
Magellan FUM fell in June but performance fees grew
The news: Investment manager Magellan Financial Group’s funds under management (FUM) dipped slightly in June, but fund inflows remained flat.
The numbers: Magellan’s FUM slipped to $36.6 billion at June-end, down from $36.7 billion recorded in May.
It experienced net retail outflows of $0.2 billion in the month but these were offset by net institutional inflows of $0.2 billion.
The context: The fund manager said it earned $19 million in performance fees for FY24, an improvement on the $11.5 million fees in FY23.
It has endured a challenging period over the last three years during which it has suffered investment underperformance, seen departures of senior management figures and faced significant outflows. Despite a steady improvement in FY24, Magellan’s current FUM is a fraction of the $113.9 billion corpus it held at the end of FY2021.
The source: ASX announcement
