Is Magellan's growth slowing?

An outflow of institutional funds has raised concerns that Magellan's growth may be stalling – but there are better reasons to be worried.

Shares in Magellan Financial Group dropped 6% earlier this month when the company reported that its funds under management (FUM) had fallen in April by about a half a per cent, due largely to a $73m outflow of institutional funds. No matter that the MSCI World index slipped by about 1% in the month, and no matter that management followed up with a note explaining that institutional fund flows can be lumpy.

It’s the first monthly fall in FUM in over a year and the market is worried that the stratospheric growth that has seen FUM rise almost tenfold in just three years might be coming to an end.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles