Magellan Financial Group Profits Soar to 11-Month High
Magellan Financial Group Ltd (AU:MFG) has reported a 31% increase in statutory net profit after tax (NPAT) for the fiscal year ending June 30, 2024, reaching $238.8 million. This rise in profit comes despite a 12% decline in total revenue, with basic earnings per share climbing to 131.8 cents. The firm also announced a final dividend of 35.7 cents per share, to be paid on September 4, 2024.
The company has also taken significant strategic steps by acquiring a 29.5% stake in Vinva Holdings, the parent company of Vinva Investment Management, for $138.5 million. This acquisition allows Magellan to distribute Vinva's products and investment strategies globally, excluding Australian institutional clients. Magellan plans to collaborate with Vinva on new product initiatives both in Australia and internationally.
Additionally, the company managed to reduce its funds management operating expenses by 16%, bringing them down to $102.4 million. Performance fees for the year were $19.2 million, the highest since FY21. Despite a 25% year-over-year drop in funds under management (FUM), which stood at $36.6 billion as of June 30, 2024, the firm saw institutional inflows of $600 million in the fourth quarter of FY24.
In governance news, Deputy Chairman and Non-Executive Director Hamish McLennan announced he would step down from the board after eight years. The announcement of these financial results and strategic initiatives led to a notable increase in Magellan's share price, which surged by 11.2%.
