Magellan Financial Group has disclosed net outflows of $2.1 billion during June, divided between retail outflows of $0.4 billion and net institutional outflows of $1.7 billion.
In its monthly update released to the Australian Securities Exchange on Thursday, the fund manager reported $39.7 billion in FUM as at 30 June 2023, down from $41.4 billion in May, the firm’s first time at sub-$40 billion in assets under management since April 2016.
Moreover, Magellan’s institutional FUM edged down to $21.3 billion at the end of June from $23 billion a month earlier, while retail FUM remained steady at $18.4 billion, following a dip from $19.2 billion in April.
Australian equities FUM was the only figure to witness an increase this month, sitting at $4.5 billion up from $4.4 billion at 31 May, which at the time, dropped from $4.5 billion from April.
Meanwhile, global equities were down from $20.4 billion to $19.1 billion, while infrastructure equities fell from $16.6 billion to $16.1 billion.
The results come after Magellan reported $0.5 billion in net outflows in May, $2.4 billion in net outflows in April and almost $4 billion in March, continuing a long-term trend for the fund manager.
In its half-year results released in February, Magellan noted that its average FUM over the half year ended 31 December 2022 was 52 per cent lower at $53.8 billion. The fund manager ended 2022 with a total of $45.3 billion in FUM.
At the time, Magellan chief executive and chief investment officer David George said while the firm has experienced a period of “accelerated and substantial change” in recent times, “we now have a well-defined and actionable five-year strategy which builds upon the qualities that have made us successful”.
Namely, at the firm’s AGM last October, Mr George pledged that Magellan would become a fund manager of global scale once more with $100 billion in FUM after five years.
Speaking recently on an episode of Relative Return, the new podcast by Momentum Media, Mr George explained that since being appointed to head the fund manager, he has worked on removing the “entrepreneurial attachments” that had previously been key.
“It’s just really simplifying that focus to make sure that it had less entrepreneurial attachments and more focus on really making sure that we got the core bread and butter, sticking to our knitting work,” he said.