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Magellan Makes it Rain

Magellan Makes it Rain
Aug 13, 2015 By Ben Visser

Magellan Financial Group (ASX:MFG) continues to grow Funds Under Management and as a result has reported an after-tax profit of $174.3 million for the full financial year ending 30 June 2015. Representing an increase of 110 per cent when compared to previous corresponding year.

 

Overall Magellan grew its Funds Under Management (FUM) by 55 per cent to $36.4 billion, generating a revenue of $255.9 million for the year, up 84 per cent from last year. The company also managed to reduce its cost-to-income ratio to 24.8 per cent, compared to 26.7 per cent last year, demonstrating the companies scalable and efficient funds management model.

 

Magellan has declared a fully franked final dividend of 37.8 cents per share, up 73 per cent on the previous corresponding year. This is in line with the boards policy of paying dividends of 75 – 80 per cent of net profit after tax of the funds management business. The final dividend of payable on the 26 August 2015 with a record date of 19 August 2015.

 

Chief Investment Officer and CEO, Hamish Douglas commented, “The 2014/15 financial year was another successful year for Magellan and is reflective of our continued commitment to our clients, the strong investment performance of our funds over the long term and the scalability of our business model.”

 

The company’s key funds all performed strongly throughout FY15. For the 12 months ending 3 June 2015, the Magellan Global Fund returned 29.5 per cent, the Magellan Infrastructure Fund returned 12.3 per cent and the Magellan High Conviction Strategy returned 31.9 per cent.

 

Following the results earlier this week, the company’s share price rallied. Profit and FUM growth exceeded investor expectations and sparked positive sentiment as the company continues to deliver. Going forward, if the company can sustain healthy FUM growth with its scalable and efficient funds management model, we may see similar results in the future.  

 

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Ben Visser Author: Ben Visser Aug 13, 2015

Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.

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