Magellan Financial Releases Funds Under Management Update
Since Magellan Financial suffered its worst monthly net outflows in April, the group was pleased to witness a gradual recovery. For the month of June, Magellan witnessed net inflows of $249 million. This comprises of net retail inflows and net institutional inflows of $173 and $76 million respectively. As at the end of 30th June 2020, total funds under management (FUM) stood at $97,184 million, slightly lower than that of $98,454 million at the end of May 2020. Specifically, global equities constituted 76 per cent of the figure, with the remaining covered by infrastructure and Australian equities -$15,912 million and $7,002 million respectively.
As of 02nd July 2020, Credit Suisse revised its upgrade for the firm. Specifically, it upgraded its recommendation to Neutral from an Underperform. The rationale behind its decision lies in its belief that retail flows are performing better than expected. While the upgrade does not represent a stark change, Credit Suisse was unable to find a negative catalyst in the near term, raising its target price to that of $55.
Back on 04th of June 2020, Magellan was also proud to launch its Airlie Australian Share Fund on the Australian Securities Exchange. Group CEO, Brett Cairns, believes that that launch of the Airlie Australian Share Fund on the exchange represents a critical milestone for Active ETFs (exchange-traded funds) in Australia. Doing so will bring about the best of both worlds and reduces the need to have two separate funds. Therefore, it benefits investors who have a preference for using unlisted funds as well as those who prefer funds quoted on the stock market. Consequently, the launch will allow investors, brokers and advisers to utilise one single, open-ended fund through the access point of their preference.
More broadly speaking, the move bears great significance as the firm has always prided itself on its emphasis on simplifying the investment process for its investors and to avoid unnecessary trouble and expenditure. The launch, therefore, represents the group’s ability to remain accountable for its words. More importantly, these next-generation open-ended funds will also be tapped upon to deliver practical yet convenient investor solutions in the long term.
To date, the Airlie Australian Share Fund represents the fourth Active ETFs launched by Magellan Financial. Another underlying beauty about the launch lies in its ability to outperform the Australian market by more than 6 per cent net of fees over the twelve months to 31st May 2020. Magellan’s Active ETFs has certainly come a long way. To date, it boasts more than 35,000 unitholders and has been utilised by investors who benefit from various factors including the ability to buy and sell on the stock market and settle via CHESS as well as gaining accessibility to real-time market pricing. Meanwhile, investors can look forward to Magellan’s FY2020 results due on 12th August 2020.
By Caroline Wong
Click here for a 7 days access to our Lotus Blue Portal.