July 14, 2024
Magellan reports 72% performance fee rise


Magellan’s funds under management (FUM) were largely flat in June as the asset manager shares its performance fees for the FY23–24.

In an FUM update, the firm said FUM as of 30 June was $36.6 billion, down only slightly from $36.7 billion at the end of May. This was divided between $17.2 billion in retail assets and $19.4 billion in institutional ones. 

This compares to $39.7 billion at the end of the FY22–23 financial year, a 7.8 per cent decline. However, the decline has slowed in recent months after several months of consistent decline in the first half of the financial year. 

Since November, six months have recorded positive FUM growth at the firm after FUM bottomed out at $34.3 billion in October 2023 following consistent monthly declines caused by the uncertainty since the departure of chief investment officer Hamish Douglass as well as poor fund performance.

Looking at specific asset classes, FUM in global equities rose from $15.5 billion to $15.7 billion and Australian equities – which encompasses its Airlie funds – was unchanged at $5.4 billion. Infrastructure equities fell from $15.8 billion to $15.5 billion.

The firm said: “In June, net flows were flat, and comprised of net retail outflows of $0.2 billion and net institutional inflows of $0.2 billion.”

Magellan also shared its estimated performance fees for the financial year which it estimates will be $19 million for the year ended 30 June 2024. This is up by 72 per cent from $11 million in the FY22–23. 

Distributions, net of reinvestment, of $0.2 billion will be paid in July and reflected in next month’s FUM figures.  

During the financial year, the asset manager made some major changes to the business, primarily in the leadership space. 

In July 2023, former Janus Henderson co-chief executive Andrew Formica was appointed as a non-executive director and chairman. In October, chief executive David George announced he would be departing immediately after just over a year in the role. 

With George’s departure, Formica stepped up to lead the firm in an acting capacity until a formal CEO was appointed.

In February 2024, the firm stated Sophia Rahmani, chief executive of Maple-Brown Abbott, would be appointed as managing director with the intention to become CEO within 12 months. She started the role in May, and Formica moved into an executive chair role to look after strategic development.

 



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