In a monthly update to the ASX, Magellan Financial Group said FUM fell to $38.6 billion at the end of 2024, down from $39.1 billion a month earlier.
The fund manager noted that its retail FUM was $16.1 billion at the end of December, a tick down from $16.2 billion in November, while institutional assets edged down from $22.9 billion to $22.5 billion.
Moreover, Magellan experienced net outflows of $400 million over the month, which included both net retail and institutional outflows of $200 million, respectively.
Looking at asset classes, the fund manager revealed that FUM in global equities rose slightly from $14.4 billion to $14.5 billion. On the other side of the coin, infrastructure equities slipped approximately $400 million to $16.6 billion, while Australian equities fell from $7.7 billion to $7.5 billion in December.
“Magellan funds will pay distributions (net of reinvestment) of approximately $0.6 billion in January, which will be reflected in the FUM figures in next month’s announcement,” the company clarified on Wednesday.
“Magellan is entitled to estimated performance fees of approximately $6 million for the six months ended 31 December 2024,” it added, noting that this compared to around $100,000 for the prior corresponding period.
Average FUM for the six months to 31 December was $38 billion, an increase from $36.9 billion in average FUM for the second half of 2023.
At Magellan’s 2024 annual general meeting in October, executive chairman Andrew Formica announced that FUM had stabilised, with outflows slowing quarter by quarter throughout the financial year.
“We have made significant progress in restoring stability to the business for our clients, staff and shareholders,” Formica said.
At the time, he added that the firm’s focus remains on sustaining strong performance across all strategies consistently over the long term.
“This is critical to our ongoing success, adding value to our clients which will, in turn, add value to our shareholders.”
