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Former A$115 billion plus ASX-listed fund manager, Magellan, hit a low of just A$35 billion under management last week as equal parts net outflows and negative returns drained the asset pool.
Magellan reported A$2 billion of net outflows in September, mostly from its core global equities strategies, with institutions withdrawing A$1.7 billion and A$300 million exiting via retail channels.
Total funds under management fell by A$4 billion over the month with the flagship international shares portfolio slumping from A$18.6 billion at the end of August to A$15.3 billion by September 30,
In fact, the Magellan global equities fund now stands about equal with the group’s infrastructure assets, which held A$15.1 billion at month-end (down from A$15.7 billion on August 31).
However, the manager’s Australian shares fund – operating under the Airlie brand – held more-or-less steady at A$4.6 billion.
The once high-flying Magellan has struggled to contain outflows since a top-level management implosion beginning late in 2021 culminated in the under-a-cloud departure of co-founder and chief investment officer, Hamish Douglass, last March.
David George, previously deputy chief investment officer of the Australian government Future Fund, was appointed as Magellan chief last year to right the ship.
At its peak at the end of November 2021, Magellan reported more than A$116 billion under management, comprising about A$86 billion of institutional mandates and over A$30 billion of retail money (including significant support from NZ financial advisers). The September 30 figures show the firm manages A$18.8 billion on behalf of institutions and $16.3 billion for retail investors.
Following the latest funds under management report, the Magellan share price slumped almost 19 per cent to close at A$7.18 last Friday.
By contrast, the rising star of ASX-listed funds management groups, GQG Partners, reported net inflows of US$1.8 billion in September, taking year-to-date flows to US$8.1 billion.
Headquartered in the US, the growth-oriented GQG was co-founded by former Vontobel co-chief, Rajiv Jain, in 2016 with assets under management now almost US$106 billion, of which about US$8.2 billion is sourced from the Asia-Pacific region.
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