Magellan Financial Group Reports 2.1% Monthly Growth in AUM

The assets under management of the Sydney-based investment manager Magellan Financial Group (MFG) have reported increase for the last two consecutive months, the second time in the FY24–25 financial year.

The assets rose from $37.5 billion to $38.5 billion month-over-month in April this year has been followed in May from $38.5 billion to $39.3 billion, up 2% from $38.5 billion to $39.3 billion. 

This is only the second time in the current financial year that AUM has risen for two consecutive months. The other occasion was between September and November 2024, but then they subsequently fell again in December.

Outflows also moderated from $1 billion last month to $0.4 billion in May, equally divided between retail and institutional channels, while the retail assets increased from $16.2 billion to $16.7 billion, and the institutional assets increased from $22.3 billion to $22.6 billion.

The company’s global equities division saw the largest AUM increase with a 3.8% rise from $13 billion to $13.5 billion. Australian equities exposure reported a smaller increase from $7.5 billion to $7.7 billion, while infrastructure equity AUM remained unchanged at $16.6 billion.

The assets of MFG, which announced a strategic partnership with Vinva division in August last year at its FY 2024 results, were $1.5 billion. Magellan, which acquired a stake of 29.5% in parent company Vinva Holdings, said that the two firms will collaborate on introducing new products in Australia and globally.

Four Funds Launched

After the announcement of the tie-up, MGF has launched four funds with the firm – Vinva Australian Equity, Australian Alpha Extension, Global Equity, and Global Alpha Extension.

Vinva Managing Director Morry Waked, on a podcast with Magellan’s Head of Distribution Mark Burgess, said that the opportunity to work with MFG will help his firm break into the retail space without the need for its own distribution network.

“We are not a distribution house. We believe we have got some great capabilities in our global equity products in particular and Australian equity products, and we felt the retail wholesale market should benefit from our capabilities,” Waked said.

He further added: “I do not want to go out there and build a retail wholesale distribution network as I wanted to look for the right partner that had an alignment in terms of understanding that we are an intellectual capital firm. Our number one objective is investor performance, our independence, and we weren’t going to compromise on that.”

Share Buy-Back Programme

In an update regarding its ongoing share buy-back programme, MFG announced that as of Friday, it has repurchased a total of 13,003,167 ordinary fully paid securities, with 52,058 bought back on the previous day.

This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.