Both Magellan and Platinum Should Stand the Test of Time, but Which Offers a Less Bumpy Ride?

Following the COVID-19 outbreak, equity markets are likely to remain volatile over the near term unless there are clear signs that the virus is successfully contained on a global scale and economic stimuluses are effective in limiting the severity of a global downturn. Revenue will be under pressure for asset managers Magellan Financial Group and Platinum Asset Management, which derive fee revenue from managing global equity portfolios. This includes base management fees that should reduce on the lower value of assets under management and performance fees that are likely to fall sharply.