Magellan Financial Group Limited (ASX: MFG) experienced net inflows of A$462 Mn in April 2019. The net inflows included net retail inflows of A$130 Mn and net institutional inflows of A$332 Mn. As at 30 April 2019, the company had total FUM of A$83,232 Mn which included retail FUM of A$22,357 Mn and Institutional FUM of A$60,875 Mn.
The Group’s global equity and infrastructure strategies for clients are operated by investment professionals who are part of the group’s investment team.
The group’s investment team include highly experienced Mr. Hamish Douglass who is serving as a Chairman and Chief Investment Officer of Magellan Financial Group. Mr. Hamish Douglass is also the Co-Founder of the group who has served in the Australian Government’s Financial Literacy Board and the Australian Government’s Takeovers Panel.
The company’s investment team also include Mr. Domenico Giuliano who joined Magellan in 2007 and promoted to Deputy Chief Investment Officer in 2014. Before Joining Magellan, Mr. Domenico Giuliano served as executive director at Morgan Stanley.
The company’s investment team also include highly experienced Mr. Gerald Stack who is the Head of Investments, Head of Infrastructure and Portfolio Manager in the company. He is a holder of a Bachelor of Economics and a Master of Business Administration degree with extensive experience in the analysis and investment management of listed and unlisted debt.
For the six months ended 31 December 2018, Magellan Financial Group Limited Reported Average FUM of $72.1 Bn, up 35% on the previous corresponding period (pcp). Further, the company reported Statutory net profit after tax of $173.5 Mn, up 225% on pcp.
During the period, the employee expenses represented 64% of the company’s overall costs and almost half of the remaining expenses are variable in nature – either moving in line with changes in FUM or being a function of the number of investors that the company has in its funds.
For the half year period, the Directors have declared an interim dividend of 73.8 cents per share, an increase of 66% from the 2018 interim dividend, reflecting the company’s revised dividend policy to pay out 90-95% of funds management profit (excluding crystallised performance fees).
The total Group expenses in FY19 are expected to be approximately $105 million. This excludes non-cash amortisation and also the expense relating to the Magellan Global Trust Unit Purchase Plan which Brett outlined earlier.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $44.015, down by 2.406% during the day’s trade with a market capitalisation of ~$7.91 billion as on 6 May 2019. The counter opened the day at $44.900 and reached the day’s high of $44.920 and touched a day’s low of $43.800 with a daily volume of ~ 509,973. The stock has provided a year till date return of 91.14% & also posted returns of 66%, 57.46% & 19.63% over the past six months, three & one-month period respectively. It had a 52-week high price of $45.270 and touched 52 weeks low of $21.800, with an average volume of ~581,087.
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