Magellan’s (ASX:MFG) funds under management falls; Kalkine Media decodes why

2 min read | September 06, 2022 11:01 AM AEST | By Sonal Goyal

Image source: © Timonschneider | Megapixl.com

Magellan’s FUM in August

Magellan reported a net outflow of AU$1.3 billion in August. It includes a net retail outflow of AU$0.6 billion and net institutional outflows of AU$0.7 billion.

As of 31 August 2022, the total FUM stood at AU$57.6 billion. Retail FUM stood at AU$21.4 billion, and Institutional FUM at AU$36.2 billion.

History of Magellan’s FUM

In the previous month (July 2022), Magellan recorded a net outflow of AU$2.5 billion. Net retail and institutional outflow were AU$0.4 billion and AU$2.1 billion, respectively. The company did not share any comment on the falling FUM.

Moving to the June quarter, the total outflow was AU$5.2 billion, the net retail outflow was AU$1.7 billion, and the net institutional outflow was AU$3.5 billion. In the June fillings, the company said that:

Magellan’s FUM has been falling continuously for the past many months.

Full-year financial performance of Magellan

On 17 August 2022, Magellan shared its full year results for the year ending on 30 June 2022. In last 12 months, the average FUM dropped by 9% on the previous year to AU$94.3 billion. Adjusted net profit after tax declined by 3%; however, statutory NPAT improved by 44%.

The company announced a final dividend of 68.9 cents per share, bringing the full year dividend to 179.0 cents per share. It is 15% lower than the full-year dividend announced in FY21.

Share price snapshot

Today, Magellan shares were spotted trading 0.96% down at AU$12.32 per share at 10:33 AM AEST.

In the past one month, the share price has declined by 14.87% (including today’s fall). In one year, the share price has dropped by 68.23%. On a year-to-date (YTD) basis, the share price has tumbled by 35.28%.

Meanwhile, ASX 200 was up by 0.42% to 6,881.00 and ASX 200 Financials (INDEXASX:XFJ) was up by 0.14% to 6,167.40 points (at 11:15 AM AEST).

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