The funds management business primarily involves prudently deploying the cash allocated by the clients across various asset classes as per the mandate. The funds management business is lucrative, the primary reason being these fund managers receive a consistent flow of income through commissions irrespective of the returns delivered by them. Further, if the performance is notched up, then they also enjoy a good inflow of cash for the fund management. Let’s have a look at two of these ASX listed fund managers.
- Platinum Asset Management Limited (ASX: PTM) is an ASX listed financial sector company, operating a fund management business. The company has many funds, each suited for a specific set of investors. Few of the funds managed by PTM are Platinum International Fund, Platinum Global Fund, Platinum International Technology Fund etc.
In April 2019 the company’s FUM witnessed an increase of $821.16 million from $25.75 billion in March 2019 to $26.57 billion in April 2019. The company witnessed net outflows of approximately $116 million and of which approximately $105 million of fund outflow was from the Platinum Trust Funds.
On 22nd March 2019, the company announced that Mr Kerr Neilson who is the founder of Platinum assets along with Judith Neilson had disposed a total of 60 million ordinary shares each (30 million shares each) at an average price of $5 per share for the total value of $300 million ($150 million each). The transaction took place on 20th March 2019, and Kerr Neilson is left with 126,037,420 shares after the transaction, and Judith Neilson has 126,037,421 remaining shares.
The market capitalisation of the company is A$2.76 billion. The 52-week high and low of the stock is A$6.38 and A$4.44 respectively. The stock closed at A$4.69 (down by 0.2%), as of 10th May 2019. The YTD return stands at a negative 2.49%.
- Magellan Financial Group Limited (ASX: MFG) is a fund manager listed on ASX. The fund aims to invest in high-quality global equities and global listed infrastructure. The company has a professional team of highly qualified and experienced investment managers to manage A$83 billion global equity and infrastructure.
On 6th May 2019, the company released its monthly FUM update according to which the total FUM has increased from A$79.44 billion in March 2019 to A$83.23 billion in April 2019. The company witnessed net cash inflows of $462 million in April which included $332 million of net institutional inflows and $130 million of net retail inflows.
On 8th May2019, the company announced that it has become a substantial shareholder of Spark Infrastructure Group. As of the filing, the Magellan holds 84.09 million shares in Spark with the total voting rights of 5.06%.
On 20th March 2019, the company informed the market that Mr Geoffrey Stirton has resigned as the Company Secretary and Ms Marcia Venegas will be taking his place with immediate effect.
The market capitalisation of the company is A$7.8 billion. The 52-week high and low of the stock is A$45.42 and A$21.8 respectively. The stock made an intraday high of A$44.12 and closed at A$43.89, as of 10th May 2019. In the last one year, the stock has delivered a return of 81.46%, and the YTD return stands at 88.83%.
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