Magellan Financial Group Ltd

MFG: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$11.70	Vcx	Zkwlrbq

Magellan Earnings: Some Recovery Evident, but Structural Issues Remain

Shaun Ler

Aug 15, 2024

No-moat Magellan’s Financial Group fiscal 2024 results slightly exceeded expectations, with underlying net profit after tax up 2% from the prior year to AUD 178 million, surpassing our forecast of a 1% decline to AUD 173 million. Earnings from funds management and principal investments modestly exceeded our expectations. A key surprise was the stronger-than-expected investment returns from principal investments, leading to an increased earnings contribution to 33% of group normalized pretax profits in fiscal 2024, compared with 22% in the prior year. Funds management earnings benefited from higher performance fees, which can be volatile.

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