Magellan Financial Group Ltd (ASX: MFG) has reported that its funds under management (FUM) fell by $1.3 billion in December 2018.
Magellan is a funds management business that largely invests in international shares like Facebook and Visa. It was set up in 2006 by Hamish Douglass and Chris Mackay. Since inception, Magellan claims it has been one of the most consistent market outperformers after fees.
Magellan FUM Update
Magellan revealed that its FUM fell from $72.11 billion to $70.78 billion in the space of one month. The decline can be attributed to its total global equities FUM dropping by $1.7 billion. Infrastructure and Australian equities didn’t suffer the same decline.
In December, Magellan received net inflows of funds of $41 million, which included net retail inflows of $90 million and net institutional outflows of $49 million.
December is the end of a half year for Magellan’s various funds, it announced it will pay distributions (net of reinvestment) of approximately $54 million.
Magellan has generated performance fees of around $42 million for the six months ending 31 December 2018, which will form part of its half year result. Average FUM for the period was $72.07 billion, compared to $53.55 billion for the same period a year ago.
The Magellan share price has opened 1.8% higher in early trade in response to this update.
Magellan tries to invest in high quality businesses, which is what the ETF in the free report below also aims to do.
Free Report: A quality ETF for global diversification
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