Magellan cops $288m net outflows

Magellan Financial Group has rolled out a new active ETF after recording $288 million in net outflows in May, as institutional investors extracted around half a billion dollars.

There were $516 million in net institutional outflows while retail investors added $228 million in net inflows.

As at 29 May, there were $71.4 billion in funds under management (FUM from institutional investors, whereas the retail portion made up $26.9 billion, up from $70.8 billion and $26.1 billion respectively a month before.

The group ended May with total funds under management of $98.4 billion, compared to $96.9 million in April.

On Thursday, Magellan launched its new active ETF on the ASX, the Airlie Australian Share Fund.

The fund, a product of the partnership between Magellan and specialist Australian equities fund manager Airlie Funds Management, is the fourth active ETF launched by Magellan. It has also given Airlie access to the retail market for the first time.

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The product has brought together the features of an unlisted fund and active ETF into a single unit in a single fund.

The group’s chief executive Brett Cairns said Magellan will be looking to deliver more of the products in the future, as the “simplification eliminates the need for two separate funds, one for investors who prefer using unlisted funds and another for those who prefer funds quoted on a stock exchange”.

“Instead, investors, advisers and brokers will now be able to invest in a single, open-ended fund using the access point they prefer,” Mr Cairns said.

“Magellan has always focused on simplifying the investment process for our investors and reducing unnecessary frictions and costs. We intend to use these next-generation open-ended funds to deliver effective investor solutions in future.”

Magellan is the responsible entity, investment manager and issuer for the fund.

Magellan portfolio managers Matt Williams and Emma Fisher are overlooking its investment management.

“Airlie’s approach to investing has been developed over 25 years and employs a conservative and robust process that weighs the financial strength, business quality, quality of management and valuation of each company,” Mr Williams said.

“We are excited to make Airlie’s investing expertise accessible to investors through the ASX.”

Magellan cops $288m net outflows
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