Magellan Financial Group has reported net outflows of $2.4 billion for October, including net retail outflows of $0.4 billion and net institutional outflows of $2.0 billion.
However, after months of declining funds under management (FUM), the firm recorded a slight increase in FUM from $50.9 billion at the end of September to $51.0 billion at the end of October.
Outflows were down compared to the previous month, when Magellan experienced $3.6 billion of net outflows including $0.4 billion for retail and $3.2 billion for institutional.
Australian equities FUM increased from $8.0 billion to $8.5 billion, and global equities FUM lifted from $26.1 billion to $26.3 billion, while infrastructure equities FUM fell from $16.8 billion to $16.2 billion.
Magellan’s FUM sat at $114.8 billion at the end of October last year, including $85.1 billion in global equities, $20.0 billion in infrastructure equities and $9.7 billion in Australian equities.
At the firm’s annual general meeting last month, chief executive David George said that Magellan will be a fund manager of global scale once more with over $100 billion of FUM after five years.
“This will not be growth for the sake of growth,” he said.
“It will be considered growth, driven by creating long-term shareholder value.”
Mr George was appointed CIO of Magellan last month alongside his role as CEO and managing director. In the past month, David Dixon has also been named as a non-executive director and deputy chairman on the board of its main operating subsidiary, Magellan Asset Management.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.