In a monthly update to the ASX, the fund manager said FUM was flat at $38 billion in October – split between $15.7 billion in retail assets and $22.3 billion in institutional assets.
The firm said net outflows were $0.3 billion during the month, which included net retail outflows of $0.2 billion and net institutional outflows of $0.1 billion. This was slightly up from $0.2 billion in September, which was all driven by retail investors.
Looking at the asset classes, FUM in global equities rose slightly from $13.9 billion to $14 billion and Australian equities, which includes Airlie Funds Management, remained flat at $7.3 billion. FUM in infrastructure equities declined slightly from $16.8 billion to $16.7 billion.
Since the start of the new financial year, FUM has risen by 3.8 per cent from $36.6 billion to $38 billion. The largest outflows so far were reported in August when it saw outflows of $0.7 billion after the conversion of the Magellan Global Fund closed class units into open class units.
In its global equities division, the firm announced during the month that it has launched a new global equity fund in association with Vinva Investment Management.
The strategic partnership with Vinva was announced in August at the firm’s FY2023–24 results, with Magellan acquiring a 29.5 per cent stake in parent company Vinva Holdings.
Vinva manages active systematic equity strategies across Australian and global equity markets, having been founded in 2010 by Morry Waked.
At the firm’s annual general meeting on 22 October, managing director of Magellan Asset Management, Sophia Rahmani, announced the launch of the first two funds with Vinva for the Australian market.
“Each of these funds provides retail and wholesale investors access to Vinva’s investment capabilities and are in areas where we see significant client demand,” Rahmani said.
Last month, at the company’s 2024 annual general meeting, executive chairman Andrew Formica announced that FUM has stabilised, with outflows slowing quarter by quarter throughout the financial year.
“We have made significant progress in restoring stability to the business for our clients, staff and shareholders,” Formica said.
At the time, he added that the firm’s focus remains on sustaining strong performance across all of strategies consistently over the long term.
“This is critical to our ongoing success, adding value to our clients which will, in turn, add value to our shareholders.”
