Magellan Financial Group has announced a 31 per cent decline in net profit after tax, reporting $165 million for the financial year. Despite this decrease, the global funds management firm saw a 5 per cent rise in operating profit, reaching $159 million. Magellan is a global investment manager providing a range of investment strategies to retail, high net worth and institutional investors. The company’s investment strategies cover global equities, Australian equities and infrastructure equities.
Magellan has declared a final dividend of 25.9 Australian cents per share, along with a special dividend of 21 Australian cents. This brings the total distributions to 73.3 Australian cents over the past 12 months, all of which are fully franked. The company has updated its dividend policy to better reflect its earnings profile, now targeting a payout ratio of at least 80 per cent of group operating profits.
According to Magellan, its net tangible asset per share has increased to $5.21, up from $5.05. This figure encompasses cash, seed investments, and investments in businesses such as Finclear and Barrenjoey. Barrenjoey, the investment bank in which Magellan holds a 36.4 per cent stake, contributed a $4 million dividend to Magellan’s earnings. These assets account for approximately half of Magellan’s $10.61 share price.
As of June 30th, Magellan reported assets under management totalling $39.6 billion. Of this amount, 41 per cent is allocated to infrastructure funds, 34 per cent to global equities, 20 per cent to Australian equities, and 4 per cent to quantitative strategies. This balance represents an 8 per cent increase from $36.6 billion a year prior.
