Magellan Financial Group Ltd (ASX: MFG) has announced this morning that it has reached $100 billion of funds under management (FUM) again.
Magellan’s August FUM
Source: Rask Media MFG 1-year share price chart.
Fund manager Magellan has announced that its FUM grew from $98.5 billion at 31 July 2020 to $100.9 billion at 31 August 2020.
This means that Magellan has grown its FUM by $6 billion from $94 billion at 31 March 2020.
In August 2020 Magellan experienced net inflows of $566 million, which included net retail inflows of $208 million and net institutional inflows of $358 million.
There was growth of funds of both retail and institutional FUM. Whilst infrastructure FUM dropped by about $240 million, Australian share FUM rose $300 million and global share FUM grew $2.3 billion.
A few thoughts
Magellan is probably one of the most promising listed Australia fund managers, although Australian Ethical Investment Limited (ASX: AEF) could also claim that title.
Magellan continues to grow its FUM at an impressive rate with good inflows each month. I like how Magellan continues to try to be innovative with new products.
According to CommSec, Magellan is valued at 20 times the estimated earnings for the 2020 financial year. That’s not a huge valuation, but it’s a bit pricey for a fund manager. I suppose the fact it’s growing FUM makes a big difference. It’s quite large now though, so Australian Ethical Investment could be a better investment. There are also other ASX growth shares that could deliver better returns like Pushpay Holdings Ltd (ASX: PPH).
