Partnerships paying off for Magellan

Investment manager, Magellan Financial Group has posted a 31% decline in full year net profit after tax to $165 million on the back of a 12% decline in investment management revenue.

The Magellan result, announced to the Australian Securities Exchange, revealed some positives via diversified earnings contributions from strategic partnerships and investments up 202% to $31.1 million and with income from fund investments up 210% to $42.2 million.

Those partnerships involving Barrenjoey and Vinva validated Magellan’s strategic decisions over the past 18 months.

The directors declared a final dividend of 25.9 cents per share and a special dividend of 21 cents per share, both fully-franked.

It said the special dividend reflected the material increase in non-investment management earnings.

Commenting on the result, Magellan chief executive and managing director, Sophia Rahmani said FY2025 had been “a year of momentum and renewal”.

She emphasised that with operating profit growing 5.4% to $159.7 million and assets under management increasing by 8.2% to $39.6 billion the company was seeing the benefits of strategic diversification and improved investment performance across all of its capabilities.

“Our investment in partnerships is increasingly contributing to earnings, with income from Barrenjoey and Vinva more than tripling to $31.1 million,” Rahmani said. “This represented 20% of our total operating profit.”

The company’s ASX announcement painted a positive outlook saying MFG enters FY26 with a high-quality platform, an experienced leadership team and growing momentum across its investment capabilities and strategic partnerships.