Magellan cops $3.9bn in net outflows

Magellan Financial Group has disclosed that it experienced $3.9 billion in net outflows during March, including net institutional outflows of $3.4 billion and net retail outflows of $0.5 billion.

In a monthly update released to the ASX on Wednesday, Magellan reported $43.2 billion in funds under management (FUM) as at 31 March, down from $45.4 billion in February.

The fund manager’s institutional FUM fell from $27.0 billion at the end of February to $24.5 billion at the end of March, while retail FUM lifted slightly from $18.4 billion to $18.7 billion.

Australian equities FUM dropped by $3.0 billion to $6.0 billion. Meanwhile, slight increases were reported for global equities FUM, which rose from $20.1 billion to $20.7 billion, and infrastructure equities FUM, which rose from $16.3 billion to $16.5 billion.

The outflows and FUM declines seen in March come after Magellan confirmed last month that Airlie Funds Management founder John Sevior is set to retire in June this year.

Mr Sevior founded Airlie in 2012 following 17 years in investment management and leadership roles at Perpetual. Airlie then went on to be acquired by Magellan in 2018.

“I am confident that the Airlie business is left in outstanding and experienced hands with the leadership of Matt Williams and Emma Fisher and a talented team of investment analysts and financial service professionals, and I look forward to supporting a smooth transition,” Mr Sevior said last month.

Portfolio management responsibilities will transition to Matt Williams, who will become Airlie’s head of Australian equities and will work with Emma Fisher as deputy head of Australian equities and portfolio manager of the Airlie Australian Share Fund.

In its half-year results released in February, Magellan noted that its average FUM over the half year ended 31 December 2022 was 52 per cent lower at $53.8 billion. The fund manager ended 2022 with a total of $45.3 billion in FUM.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.