Magellan shares dip on August funds fall
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More news: Magellan shares fell after the investment manager posted a drop in funds under management in August.
Shares were down 1.7% to $9.07 by 2:30pm AEST.
Magellan funds drop in August on retail outflows
The news: Investment manager Magellan Financial Group’s funds under management (FUM) have dropped in August on the back of its retail redemptions.
The numbers: Magellan’s FUM fell to $37.8 billion at August-end, from $38.4 billion recorded in July. It experienced net retail outflows of $600 million in the month, which included $400 million of net redemptions from the Magellan Global Fund after the conversion of closed class units to open class units.
It also recorded net institutional outflows of $100 million.
The context: Magellan previously flagged the retail redemptions from specialist investors that purchased closed class units at a discount to net asset value.
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
