Magellan’s share price gained over 10 per cent to reach $17.06 at 12 pm on Thursday, the firm’s highest share price since late February.
The share price boost followed an ASX filing, which revealed slight gains in Magellan’s funds under management (FUM) at the end of March.
Magellan reported that while it did experience FUM outflows, its total FUM increased from $69.1 billion on 11 March to $70 billion on 31 March 2022.
Interestingly, Australian equities expanded to $9.9 billion from $9.5 billion on 11 March, while global equities expanded to $39.6 billion from $39.2 billion, and infrastructure equities ended up 0.5 per cent higher at $20.5 billion.
The firm did, however, record net outflows of approximately $1.1 billion from the most recent FUM update as at 11 March 2022 to 31 March 2022, which comprised net retail outflows of $0.5 billion and net institutional outflows of $0.6 billion.
In addition, Magellan reported that it has received notifications of intention to redeem $0.2 billion, which has been reflected in the above FUM figures.
Retail FUM is becoming increasingly crucial for the business, standing at $25.7 billion on 31 March, compared to $25.2 billion three weeks earlier. Institutional FUM followed the upward trend, adding $0.4 billion to $44.3 billion.
February was a tumultuous month for the fund manager sparked by the announcement that chief investment officer Hamish Douglass would be taking an indefinite leave of absence on medical grounds. Just last year, Magellan suffered a hefty setback when St James’s Place withdrew its mandate worth $24 billion in FUM.
Magellan’s has since shifted its focus to strengthening governance and accountability across the business.
In an investor presentation accompanying the firm’s publication of half-yearly results, Magellan’s new chairman Hamish McLennan hinted that the firm is a lot bigger than Hamish Douglass.
“Let me remind you we have a very robust business,” Mr McLennan said.
“We have a highly experienced longstanding and proven investment team.”
Magellan’s FUM sunk 6.8 per cent to $87.1 billion as at 9 February, on the back of Mr Douglass’ unexpected departure. The firm has since experienced net outflows of just under $20 billion.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
