Large increase in funds under management from 100 billion to 106 billion. Change in reporting flows from monthly to quaterly. At magellans size inflows aren't as material as they used to be (e.g 200m inflow on 15 billion FUM is 1.33% of FUM, 200m inflow on 106 billion is 0.19% of FUM). Global fund up 3.8% month to date (Calculated with MGOC.ASX NAV movements), on track for record full year dividend*.
*dependant on market conditions for the rest of financial year and related performance fees.
05-Feb-2021: Funds Under Management - January 2021
In January, Magellan experienced net inflows of A$223 million, which included net retail inflows of A$85 million and net institutional inflows of $137 million. Total FUM is now A$100.4 billion, of which around 27% is Retail and 73% is Institutional FUM (funds under management).
Retail is generally higher margin than institutional, so it would be positive to see the retail percentage move higher over time. Around two years ago Hamish Douglass stated that they intended to increase the percentage of their FUM that came from higher margin retail investors. However, 12 Months ago, the split was the same (27/73) so there has been no improvement over the past year. Magellan had tried to raise their own profile by becoming the main corporate sponsors of the Australian Men's Cricket Team, but they then cancelled that sponsorship deal in the wake of the "sandpaper-gate" ball-tampering scandal. Also, 12 months ago (31-Jan-2020), Magellan's total FUM was A$104.3 billion, vs. A$100.4 billion now, so they haven't gained ground there either in the past year. Most of Magellan's FUM is invested in US companies and one A$ was worth 67 US cents on 31-Jan-2020, and was worth 76.7 US cents on 29-Jan-2021, so their FUM was worth around US$155.7 billion a year ago (on 31-Jan-2020), and was worth US$130.9 billion on 31-Jan-2021, so that looks even worse in US$ terms.
I'm no longer invested in MFG, the manager of the Magellan funds, but I do hold units (for my kids) in 2 of the funds that they manage, being MHH (the Magellan High Conviction LIT: Listed Investment Trust) and MGF (the Magellan Global Fund, formerly MGG) which is a "registered managed investment scheme". Both are listed funds, so their units can be traded on the ASX just like any other shares can be.
For a good overview of how they see things and what they are currently invested in - see here: Magellan Minutes - Magellan Financial Group (magellangroup.com.au)
17-Oct-2020: Magellan Live Webinar - What Really Matters?
Hamish Douglass gives his thoughts on the US election, explains a critical assumption driving share markets higher and tells why Chinese tech giants will survive any decoupling with the US. (Viewing time: 60 mins)
Marcus Padley provided a link to it in his "MarcusToday" Saturday email this morning and said: "This webinar was probably one of the most watched this week - it’s a great bit of marketing in disguise of course from Magellan but hopefully we don’t compete with Hamish. Hamish Douglass is the chairman, CIO and Lead Portfolio Manager at Magellan. The webinar includes “his thoughts on the US election, explains a critical assumption driving share markets higher and tells why Chinese tech giants will survive any decoupling with the US”. Good weekend watching although it does take an hour."
I don't currently hold MFG, however I do hold MGG & MHH (in the portfolio I manage for my 2 kids) which are two LITs that are both managed by MFG. Hamish Douglass is a superstar investment manager and always worth listening to.
07-Oct-2020: Funds Under Management - September 2020
In September, Magellan experienced net inflows of $1,198 million ($1.2 billion), which included net retail inflows of $239 million and net institutional inflows of $959 million.
September 30 Total FUM was $102,088m ($102 billion). When Hamish Douglass and Chris Mackay started Magellan and Hamish said he was targeting FUM of $50 billion, very few people thought that target was anything other than delusional - a joke - but here we are after a few years and he has DOUBLE that amount in Funds Under Management and Magellan is the Premier Australian-based global investment firm, and is in the ASX100 index.
I like MFG, however I do not currently hold them simply due to the share price being a little high for my liking. I like them better under $50, and better still under $40. I've made money on MFG in the past, but I've jumped off the ride too early, such as when their sponsorship deal with Cricket Australia fell through (Hamish cancelled the deal) on the back of the ball-tampering scandal (sandpapergate). They more than doubled from there, and I had already sold out. What I've learned about MFG is that you should NEVER underestimate Hamish Douglass. He's VERY smart, and he has a lot of very smart people globally on retainer providing him with up-to-date information on pretty much everything. He believes that good information is very valuable and he's happy to pay for it. I would consider him to be the most informed global fund managers we have. He also treats his unitholders/investors very well. He has set new standards for Australian fund managers where the management company absorbs the costs of IPOs, DRP-discounts, bonus units, etc, not the unitholders (investors). I currently have his MGG and MHH LITs (listed investment trusts) in the portfolio I run for my two children - along with FGX.
MFG's September inflows - during a month when the Australian market lost ground - suggests to me that money is coming back into the market off the sidelines now, that the majority are seeing more upside than downside from here - globally. I'm not sure I agree with that short term, but it's still interesting to note.
And for their individual fund reviews: https://2020.magellaninreview.com.au/#fundReviews
MFG is of course the manager, not a fund, and I don't currently hold MFG shares (wish I did!!), but I do hold shares in some of their listed funds, such as MGG & MHH (which MFG manage).
They sent me an email this afternoon that started off with:
"The past six months have been truly extraordinary, unlike any other global crisis that people have seen in their careers. More than 13 million people have now been infected as covid-19 has spread around the world. The human cost of the virus is sobering and so too is the economic damage. Authorities globally have responded with unprecedented stimulus that arrested markets from their March lows. As the end of the financial year passes, we’ve taken stock of the past 6 to 12 months and share with you our most up-to-date investment thinking in ‘Magellan's InReview 2020’, our annual investor communication published in July each year."
"Magellan's InReview 2020 has a collection of deeply thought-provoking investment perspectives from across the Magellan investment teams. It includes a keynote article by Hamish Douglass - 'Knowing what you don’t know’, a recent video in which Janet Yellen, the former Chair of the US Federal Reserve, and adviser to Magellan, talks to Hamish Douglass about the outlook for the global economy, as well as articles from Airlie Funds Management’s Matt Williams and Magellan’s Global Listed Infrastructure Head, Gerald Stack."
"Annual Fund Reports and Quarterly Fund Factsheets for our range of global equities, global listed infrastructure and Australian equities portfolios, can also be found in Magellan’s InReview 2020 site."
The second link at the top of this straw (2nd from the top) can be used to access their reviews of the various funds that they manage.
Magellan (MFG) are the most respected global fund managers that Australia has ever produced I believe, and certainly one of the most successful, having easily surpassed Kerr Neilson and his team at Platinum Asset Management. Platinum specialise in Asia, particularly China. Magellan do own Chinese stocks, like Tencent and Alibaba, but most of Magellan's biggest winners are listed in the USA. MFG itself (the manager) has been a brilliant stock to own, but I always end up selling out way too early...
This is my own analysis for MFG. Please note that this is my first attempt at writing my own report and I dont expect it to be perfect but you have to start somewhere. Would love any feedback and thoughts.
04-June-2020: Launch of Airlie Australian Share Fund (Active ETF)
MAGELLAN FINANCIAL GROUP LIMITED
Launch of Airlie Australian Share Fund using next generation of Active ETFs
Magellan Financial Group Limited (“Magellan”, ASX: MFG) is pleased to announce that the Airlie Australian Share Fund (Ticker: AASF) will commence trading on the ASX today.
Brett Cairns, Magellan’s CEO, said today: “The launch of Airlie Australian Share Fund on the ASX represents an important evolution of Active ETFs in Australia. This simplification eliminates the need to have two separate funds, one for investors who prefer using unlisted funds and another for those who prefer funds quoted on a stock exchange. Instead, investors, advisers and brokers will now be able to invest in a single, open-ended fund using the access point they prefer.”
“Magellan has always focussed on simplifying the investment process for our investors and reducing unnecessary frictions and costs. We intend to use these next generation open-ended funds to deliver effective investor solutions in the future.”
Matt Williams, portfolio manager for the Airlie Australian Share Fund, said: “The Airlie Australian Share Fund is a product of the partnership between Magellan and Airlie Funds Management. Airlie’s approach to investing has been developed over 25 years and employs a conservative and robust process that weighs the financial strength, business quality, quality of management and valuation of each company. We are excited to make Airlie’s investing expertise accessible to investors through the ASX.”
The Airlie Australian Share Fund (Ticker: AASF) is the fourth Active ETF launched by Magellan and has outperformed the Australian market by 6.6% net of fees over the 12 months to 31 May 2020.
With around A$2.5 billion in funds under management and over 35,000 unitholders, Magellan’s Active ETFs have been widely adopted by investors who benefit from:
(1) The Airlie Australian Share Fund has returned 2.7% p.a. since inception on 1 June 2018, outperforming the Australian market by 0.9% p.a. over that period. Past performance is not necessarily indicative of future performance.
--- click on link above for more ---