Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Why the Magellan (MFG) share price is going bananas

The Magellan (ASX: MFG) share price is up 12%, it’s going bananas.

What is Magellan?

Magellan is a funds management business that largely invests in international shares like Facebook and Visa. It was set up in 2006 by Hamish Douglass and Chris Mackay. Since inception, Magellan claims it has been one of the most consistent market outperformers after fees.

What is going on with Magellan?

This morning the fund manager released its monthly funds under management (FUM) update to investors for March 2020.

Magellan disclosed that its total FUM declined by 6.6% to $94 billion compared to a month ago. However, whilst the fund manager experienced net retail (regular investor) outflows of $303 million it actually saw net inflows of $469 million thanks to net institutional inflows of $772 million.

Some investors would say that it’s impressive that Magellan continues to see net inflows despite one of the worst months in the history of the share market.

Magellan saw a fall in the value of its FUM in all areas – retail, institutional, global equities, infrastructure equities and Australian equities.

The fund manager benefits from rising share prices because the value of its FUM goes up, which means higher management fees.

Is Magellan a buy?

I think Magellan could be the best ASX-listed fund manager, but it’s certainly priced as such. It might be a decent long term buy today, but I’d rather wait for another pullback rather than buying. In the meantime, these ASX technology shares could be better buys:

[ls_content_block id=”18457″ para=”paragraphs”]

Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content