On 8 March 2019, Fund Management company, Magellan Financial Group Limited (ASX: MFG) has released its FUM update for the month of February wherein it experienced net inflows of A$284 million in February month. Further, the company informed that as at 28 February 2019, the company had Funds Under Management (FUM) of A$76,030 million as compared to FUM of A$72,950 million as at 31 January 2019, representing an increase of ~4.2%.
The total FUM include Retail FUM of A$20,179 million and Institutional FUM of A$55,851 million. Moreover, the net inflows of $284 million include net retail inflows of $100 million and net institutional inflows of $184 million.
The group recently released its interim results for the six months ended 31 December 2019. In the half-year period, the Average funds under management of the group increased by 35% to $72.1 billion as compared to the previous corresponding period (pcp). This increase in average FUM drove a 28% increase in management and services fees to $228.1 million.
Magellan Financial Group Limited is the parent company of Magellan Asset Management Limited who is the responsible entity of the Magellan Global Trust.
In another release on ASX, the group informed that the Unit Purchase Plan offer of its Magellan Global Trust was closed on 6 March 2019. Under this offer, The Magellan Global Trust received applications from more than 21,000 unitholders totalling around $277 million; however, this amount is not included in FUM figures of February 2019. The group has estimated that almost 50% of unitholders participated in the Offer.
The new units under the offer will be issued at a price of $1.5327 per unit. As a result of the Offer, around 181 million New Units will be issued on 13 March 2019, and the Holding statements are expected to be dispatched on 14 March 2019.
As per the company’s announcement, the new units will be entitled to the distribution to be paid in respect of the six months ending 30 June 2019.
To minimize the dilution from the Offer, the Magellan Group is going to pay around $14.6 Mn to the Magellan Global Trust (ASX: MGG). This amount is equal to the 5% discount to the NAV per unit from which the offer price under the Offer was determined.
This cost will be included in Magellan Financial Group’s 2019 financial year expenses but will not impact the full-year dividend and is additional to the group’s estimated total 2019 expenses (excluding non-cash amortization) of approximately $105 million.
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 $35.410, down by 1.042% during the day’s trade with a market capitalization of ~$6.36 billion as on 8 March 2019 (AEST 1:22 PM). The counter opened the day at $35.900 and reached the day’s high of $35.960 and touched a day’s low of $35.360 with a daily volume of more than 209,478. The stock has provided a year till date return of 52.37% & also posted returns of 30.06%, 31.50% & 24.51% over the past six months, three & one-months period respectively. It had a 52-week high price of $36.340 and touched 52 weeks low of $21.800, with an average volume of ~531,461.
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