Magellan Financial Group Ltd

MFG: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$42.90	Gml	Lbkylxpwq

Magellan: Higher-Than-Expected Redemption Spooks Market but Overall Rate Slowing

Shaun Ler

Oct 8, 2023

No-moat Magellan’s recent funds under management updates post-fiscal 2023 highlight its vulnerability to prolonged market downturns. We trim our fair value estimate to AUD 10.20 per share from AUD 11.00 on higher-than-expected institutional redemptions. Net institutional outflows of AUD 1.7 billion in the September quarter exceeded our expectations, making up 68% of our prior full-year projection of AUD 2.5 billion.

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