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At the company’s 2024 annual general meeting. executive chairman Andrew Formica announced that FUM had stabilized, with outflows slowing quarter-on-quarter throughout the financial year.
“We have made significant progress in restoring business stability for our customers, staff and shareholders,” Formica said.
As of September 30, 2024 Magellan’s FUM was $38 billion, higher than the average for FY2023-2024. of $36.8 billion.
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This positive momentum was driven by new client wins, particularly within the institutional channel, which saw inflows of approximately $600 million in Q4 FY23–24 and additional inflows in July 2024. demonstrated renewed confidence, Formica said.
Magellan's strong performance in its global equity strategy, which delivered more than 15 per cent in the second half of the year - its highest half-year return since FY20-21 - also contributed $19 million in performance fees.
“Our focus remains on maintaining strong performance across all our strategies consistently over the long term. This is critical to our continued success, adding value to our customers, which in turn will add value to our shareholders,” the chairman said.
“Across all parts of the business, we have a high-quality team that is collaborative, committed and entrepreneurial. We have a client-first culture and are focused on delivering excellent investments to our clients.”
Formica emphasized that the strength of Magellan's operating business, Magellan Asset Management, lies in its investment capabilities in global equities, infrastructure, Airlie and Vinva, supported by a highly valued distribution team.
He also highlighted the firm's strong brand equity and strategic minority investments in high-quality businesses, including Barrenjoey Capital Partners, FinClear Holdings and Vinva.
He noted that Vinva was a major highlight for Magellan this year with the announcement of a strategic partnership with the investment manager in August.
“This is an important development for the future of our business and highlights the built-in strength and appeal of our platform to leading investment firms and teams like Vinva. It also highlights the unique avenues available to Magellan for growth through equity investment through our established associate businesses or through wholly owned opportunities,” the chairman said.
"Both avenues allow investment firms to access and benefit from our strong operations and broad global distribution platform and demonstrate that Magellan can become a diversified financial services provider of choice and enhance its offering of high-quality products, that we offer to customers that way," he said.
Looking ahead, Formica expressed optimism with new leadership under Sofia Rahmani, who was appointed Magellan's managing director in May 2024. and will transition to CEO in six months.
With expansion plans underway, Magellan, he said, appears well-positioned to capitalize on this positive change and restore its reputation as a trusted wealth management partner.
"While we recognize the journey ahead, we are encouraged by the progress we are making and believe our business is strategically poised for future growth and to deliver shareholder returns as a result of the steps we have taken over the past year," Formica said.
"Our profitable business and financial strength provide us with the firepower to execute on our growth agenda while continuing to generate strong cash flows that help generate attractive dividends for shareholders."