Magellan shares tumble despite FUM boost
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More news: Shares in Magellan Financial Group fell on the ASX despite the Sydney investment manager increasing its funds under management in September.
Magellan shares were down 2.5% to $9.69 by 1:20pm AEST.
Magellan FUM lifts in September despite retail outflows
The news: Investment manager Magellan Financial Group’s funds under management (FUM) rose 0.5% in September.
The numbers: Magellan’s FUM increased to $38 billion at September-end, from $37.8 billion recorded in August.
It experienced net retail outflows of $200 million while net institutional flows were flat.
Retail FUM declined $300 million to $15.7 billion during the month. Institutional FUM added $500 million to $22.3 billion.
Global equities fell $300 million to $13.9 billion, infrastructure equities gained $300 million to $16.8 billion and Australian equities rose $200 million to $7.3 billion.
The context: In September, Magellan's Australian equities brand Airlie Funds Management became a substantial holder in Ampol, buying $5.4 million worth of shares for a 5% stake in the fuel retailer.
The fund manager 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
