Magellan Financial Group Ltd (ASX: MFG) shares rose 1.5% this morning after reporting its funds under management (FUM) rose by $2.15 billion in a month to $69.5 billion. This was a bigger increase than May 2018’s fund update.
Magellan Financial Group is a fund manager that gives its investors exposure to international shares, mainly global businesses that are listed in the United States. It generates management fees by managing funds and earns performance fees if its various funds outperform a designated benchmark.
Magellan said that it had net money inflows of $218 million, of which net retail (or ‘regular investor’) inflows were $4 million and net institutional inflows were $214 million.
The fund manager said that it expects to pay distributions (after reinvestments) of around $755 million in July which will be reflected in July’s monthly funds update.
Magellan estimates that it has earned performance fees of around $40 million for the 2018 financial year. This includes $9.6 million which was reported in the half year result earlier in the year.
Fun fact: Magellan’s total funds under management is less than Warren Buffett’s net worth! Warren Buffett was a millionaire in his late 20’s but ‘only’ worth $300m at his 50th birthday. Now he is a $US84 billion investor.
That means he made 99% of his wealth after turning 50! How does a 50-year-old do that? Download the free Aussie investing ebook, “What Buffett’s Investing Checklist Can Teach Aussie Investors“ when you join the free Rask Group Investor Club Newsletter. You’ll get insights into the 4 steps Buffett uses to pick his investments.
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