Magellan’s profits have surged and the company has upped its dividend as FUM grew by 29 per cent in 2019.
The company’s half-year earnings show a 13 per cent increase in adjusted net profit after tax, from $176.5 million in 1H2019 to $216.8 in 1H2020. That’s been supported by massive inflows into FUM, with the company now managing $92.8 billion, up from $72.1 billion in 1H2019 – a 29 per cent increase.
“Magellan had a successful first half that has been underpinned by strong investment performance,” said CEO Brett Cairns.
“We continue to focus on our clients. Delivering on our investment objectives, helping meet client needs and continuing to simplify investor experiences will ultimately lead to strong financial outcomes for our shareholders over time.”
The company has also increased its interim dividend by 26 per cent, rising to 92.9 cents per share.
Mr Cairns also used the earnings report to lay out a roadmap for Magellan.
“We expect to make the Airlie Australian Share Fund available on the ASX in the coming weeks,” Mr Cairns said.
“Importantly, this is not a new fund or a new class of units. Rather, the existing units of the currently unquoted fund will also be available for purchase or sale on the ASX, along with the existing traditional application and redemption process.”
Magellan has also made progress on developing a client solution for retirement income and is aiming to launch a Magellan Retirement Fund before the end of the financial year.