Magellan bulwarks to retain staff

Magellan has moved to buttress its funds management expertise, announcing today it is providing million unlisted options to its staff as part of a staff retention program.

The troubled fund manager announced the move as part of its interim results announcement confirming a 24% increase in net profit after tax to $251.6 million and a 12% increase in average funds under management to $112.7 billion.

The company declared an interim dividend of 110.1 cents per share – an increase of 13%.

Magellan’s interim chief executive, Kirsten Morten acknowledged that the fund manager had faced a number of challenges over recent months but argued that it remained in a robust financial position and had delivered strong financial results.

She noted that even allowing for the loss of the St James’s Place mandate, adjusted net profit after tax was broadly in line with the prior period at $212.5 million.

The company announced a number of capital management initiatives including a 1 for 8 bonus issue of Magellan shares, the staff retention options, and consideration of an on-market share buy-back.

It also noted that it was suspending its dividend reinvestment plan had no plans to make further investment via Magellan Capital partners.