Magellan Flexing Its Brand Power and Track Record in Search of More FUM, FVE Increased

Narrow-moat Magellan Financial Group delivered a strong set of results amid challenging market conditions, and unveiled new initiatives which we believe should help drive further funds under management, or FUM, inflows. Fiscal 2020 adjusted NPAT was up 20% from the prior year to AUD 438 million, 10% above our forecasts. Base management fees increased for the 11th consecutive year, this time by 26% to AUD 587 million. Average FUM grew 26% to AUD 95.5 billion, supported by the Magellan High Conviction Trust raising, consistent net flows and investment outperformance that helped Magellan soften the coronavirus hit.