In an ASX statement, Magellan Financial Group reported it had $38.4 billion in funds under management (FUM) as at 31 July, up from $36.6 billion at the end of June.
The fund manager confirmed that net flows were down $100 million over the month, comprising net retail outflows of $1 billion and net institutional inflows of $900 million.
Namely, Magellan’s retail FUM edged down to $16.6 billion from $17.2 billion the month before, while its institutional FUM rose to $21.8 billion from $19.4 billion.
Meanwhile, global equities FUM slipped in June, down from $15.7 billion to $14.8 billion. Infrastructure equities FUM increased from $15.5 billion to $16.5 billion while Australian equities FUM was up by $1.7 billion month-on-month, reading at $7.1 billion.
Unpacking the results, Magellan revealed that retail outflows for July included $800 million of net redemptions from the Magellan Global Fund following the conversion of Closed Class Units to Open Class Units last month.
Namely, on 22 July, unitholders who were registered as holders of a Closed Class Unit received 0.73604246 Open Class Units for every Class Unit held.
According to the firm, the conversion resulted in a total of 1.11 billion new Open Class Units being issued.
“Most of these redemptions were from specialist investors that purchased Closed Class Units at a discount to net asset value,” Magellan explained on Tuesday.
“We expect a further [$200 million] in redemptions from specialist investors in August.”
Overall, the fund manager’s FUM picture over the past year has been marked by instability, having reported a slip in FUM last month following growth seen in May. This came after reporting an FUM loss in April, which was preceded by five consecutive monthly increases.
In June of last year, Magellan had $39.7 billion in FUM, down from $41.4 billion in May 2023 – the company’s first time at sub-$40 billion in assets under management since 2016.
While the firm has yet to crack $40 billion again, in its 1H24 results, Magellan cited the progress it was making in restoring corporate stability, resolving a number of legacy issues, and gaining momentum on strategic priorities.
This included the appointment of Sophia Rahmani to the role of managing director of its main operating subsidiary, Magellan Asset Management Limited, effective from May.
