Argo Investments 2018-19 results were similar to many of its rivals in the Listed Investment Company (LIC) space, or those more traditional with big holdings in old-line stocks like the big miners such as BHP and Rio Tinto and the spin-off of Coles from Wesfarmers late in 2018.
Fund flows are improving for Magellan Financial ((MFG)) and several brokers consider the valuation support is now better after the June quarter. Funds under management increased 20% in the second half, underpinned by the Airlie acquisition, positive markets and net inflows.
Magellan Financial Group announced this week that it will launch a listed investment trust for its successful 'high conviction' strategy. Chris Wheldon, Portfolio Manager of the High Conviction Fund and an Assistant Portfolio Manager on the Global Equities Strategies sat down to tell us more.
FY19 net profit was well ahead of UBS estimates which purely reflected one-off unrealised asset gains. Otherwise, funds management profit was in line. Of more interest to the broker was the $270m equity raising announcement to fund future growth initiatives.
The company ended June with $86.7bn in funds under management, up 24.7% over the financial year. Morgans expects an update on new products at the August results, such as the US sustainable and retirement income product, which are medium to longer term growth options.
The latest trading update showed Magellan is still seeing inflows, on top of stronger performance fees. Morgan Stanley analysts highlight the key global equities fund performed circa 6% better than its benchmark over 6mths and circa 8.5% over 12mths.
Magellan delivered 3% year on year funds under management inflows in the Sep Q, mostly in August, indicating improvement in retail flows. Market performance was strong, again with August the main driver.