Magellan Financial Group, a renowned Australian fund manager, has announced a significant decrease in its annual profit. Despite the decline, the company is optimistic about signs of improvement in its investment performance.
According to Magellan's financial report, its net profit for the 12 months ending on June 30 was 182.7 million Australian dollars (US$117.07 million), a substantial drop from the previous year's profit of A$383.0 million. This figure falls slightly below the A$175.1 million estimated by FactSet, a leading financial data provider.
The company's funds under management also saw a decline, falling by 35% to A$39.7 billion from the previous year's A$61.3 billion. Magellan's adjusted net profit after tax experienced a similar decrease of 57%, amounting to A$174.3 million.
Despite these challenges, Magellan's Chief Executive David George remains positive. He expressed satisfaction with the improvements made throughout the year, emphasizing enhanced collaboration, information flow, and efficiency within the organization. George stated, "Our primary focus has been on delivering the investment performance we are known for, and we are encouraged by the positive outcomes of our efforts. Investment ideas are now being brought forward earlier and prioritized more efficiently."
In light of their financial results, Magellan has declared a final dividend of 35.6 Australian cents per share and a performance fee dividend of 4.2 Australian cents per share. Additionally, the company has announced a special dividend of 30.0 Australian cents per share.
Notably, this marks a decrease in dividends compared to the previous year when Magellan declared a final dividend of 68.9 Australian cents per share.
For more information, please contact Magellan Financial Group.