Magellan Sees $200 million in Outflows Amid Modest Performance Fee Gains

Highlights:

• Magellan Financial Group Limited (ASX: MFG) reported net fund outflows of $200 million for June 2025.
• The company will distribute approximately $500 million (net of reinvestment) in July, to be reflected in its next AUM update.
• Magellan expects to earn around $11 million in performance fees for the financial year ended June 30, 2025.

Magellan Financial Group Limited (ASX: MFG) has reported net fund outflows totalling approximately $200 million for June 2025. This announcement, made on Friday, reflects continued investor withdrawals amid a challenging period for the investment manager.

Distributions to Influence Next AUM Update

The Sydney-based fund manager also disclosed that its funds will pay distributions—net of reinvestment—of about $500 million in July. These distributions are expected to be included in the group’s next monthly assets under management (AUM) update, and may significantly influence reported totals. At the time of writing, Magellan’s recent performance trends continue to reflect persistent headwinds, with its flagship global funds seeing subdued investor sentiment and reduced net inflows over recent months.

FY24 Performance Fees Total $11 million

Despite these outflows, Magellan noted that it is entitled to receive estimated performance fees of approximately $11 million for the financial year ended June 30, 2025. These fees represent an important revenue stream for the group and suggest that some of its strategies have met or exceeded benchmarks during the year. Although the fee figure is relatively modest compared to previous years, it provides a partial offset to the broader decline in net inflows and helps support earnings amid ongoing structural changes within the business. Magellan has been actively working to rebuild investor trust and stabilise its fund performance following key executive departures and strategic shifts in recent years.

Outlook Cautiously Monitored

With investor sentiment still fragile, market participants will closely monitor Magellan’s upcoming AUM updates and any signals on future inflow momentum or portfolio repositioning.

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