Magellan Financial Group Ltd (ASX: MFG) will be watched closely by investors today after the funds management business reported its financial results for the year ended 30 June 2018.

Magellan Financial Group is a fund manager with more than $69.5 billion of funds under management. It is known for investing in overseas shares.

Here are some of the highlights from Magellan Financial Group’s report:

  • Revenue increased by 33.8% to $452.6 million
  • Net profit went up 7.9% to $211.8 million
  • Profit per share increased by 6.9%
  • Net profit excluding MGG costs rose by 37%
  • Dividends per share increased by 57% to $1.345

According to Bloomberg, analysts were expecting Magellan to report a profit of $209.8 million. The Magellan share price is currently up 9.57% in early reaction, so investors appear very pleased with the report.

The dividend saw such a large increase because the Magellan Board revised the dividend policy to 90% to 95% of the management business net profit, the prior payout ratio was 75% to 80%.