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Magellan first half profit up 41%

By Reporter
3 minute read

Magellan has announced a first half net profit after tax of $109.3 million, with average funds under management up 44 per cent to $38.8 billion.

The six months to 31 December 2015 saw Magellan Financial Group deliver a net profit after tax of $109.3 million, up 41 per cent on the prior corresponding period.

Diluted earnings per share were 63.7 cents, up 41 per cent and the interim dividend announced was 51.3 cents per share, fully franked.

Average funds under management climbed 44 per cent to $38.8 billion for the international funds management firm.


Magellan chief executive and CIO Hamish Douglass said the solid result reflected the scalability of the company's business model, as well as its focus on its clients.

Mr Douglass also pointed to the strong investment performance of firm's global equities and global listed infrastructure strategies, as well as the "deepening penetration of our global equities strategy with retail Australian investors, advisers and brokers".

"We saw record average monthly retail net inflows during the period of $214 million, compared to $123 million for the six months to 31 December 2014," Mr Douglass said.

"The increase in average monthly net inflows includes the benefits of the launch of the ASX-quoted versions of our global equities strategy ... and entering into new arrangements with AMP and BT/Westpac.

"The combined funds under management of the Magellan Global Equities Fund and the replica funds on the AMP and BT/Westpac platforms was approximately $800 million as at 31 December 2015.

"The Magellan Global Equities Fund/Magellan Global Equities Fund (Currency Hedged) have attracted more than 8,500 unitholders.

"More than 60 per cent of unitholders are self-managed superannuation funds. We are seeking to launch an ASX-quoted version of our global listed infrastructure strategy in the second half of 2015-16," Mr Douglass said.

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