Magellan turns corner, announces key US move

Mike Taylor

Managing Editor and Publisher

16 August 2024

Fund manager Magellan has sought to move beyond its recent troubles on the back of a solid full-year result by announcing a refreshed US distribution platform and a strategic partnership with systemic equities investing pioneer, Vinva Investment Management.

Magellan announced a statutory net profit after tax of $238.8 million which saw the board declare a final dividend of 28.6 cents per share and a performance fee dividend of 7.1 cents per share 50% franked.

Commenting on the result, Magellan executive chairman, Andrew Formica said the company had made significant progress in restoring stability across the business.

“Our financial results reflect the resilience of the business following a challenging few years,” he said noting that the performance of its investment strategies had generated $19.2 million in performance fees, the highest since the 2021 financial year.

“Importantly, we addressed several legacy issues that have helped to restore stability to the business and position us for future success,” Formica said. “These include successfully implementing transitional leadership arrangements, resolving the Employee Share Purchase Plan loans for our staff and introducing a new remumeration framework, as well as converting the Magellan Global Fund Closed Class into an Open Class.”

“Having delivered on these important initiatives, we are now focused on our strategic objectives and growth.”

Announcing the Vinva Investment Management partnership, Formica said it will see Magellan bring the company’s innovative product solutions to Magellan clients.

“We have taken a strategic equity stake in the business, which we consider has significant growth potential,” he said. “We also announced a refreshed US distribution platform which will lay the foundation for future growth in this important market.