Magellan Financial Group Ltd (ASX: MFG) will be watched closely by investors today after the funds management business reported its financial results for the year ended 30 June 2018.
Magellan Financial Group is a fund manager with more than $69.5 billion of funds under management. It is known for investing in overseas shares.
Here are some of the highlights from Magellan Financial Group’s report:
- Revenue increased by 33.8% to $452.6 million
- Net profit went up 7.9% to $211.8 million
- Profit per share increased by 6.9%
- Net profit excluding MGG costs rose by 37%
- Dividends per share increased by 57% to $1.345
According to Bloomberg, analysts were expecting Magellan to report a profit of $209.8 million. The Magellan share price is currently up 9.57% in early reaction, so investors appear very pleased with the report.
The dividend saw such a large increase because the Magellan Board revised the dividend policy to 90% to 95% of the management business net profit, the prior payout ratio was 75% to 80%.
The MGG costs relate to the launch of the Magellan Global Trust (ASX: MGG), a listed investment trust, which now has assets of almost $1.7 billion.
During the year Magellan acquired Airlie Funds Management, which added $6.3 billion of funds under management.
Hamish Douglass, Magellan’s CEO and Chief Investment Officer, said: “I am extremely proud that, since Magellan was founded in 2006, $35 billion of value has been created for our clients and our shareholders who have entrusted Magellan to management money on their behalf.”
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