Fund managers in line for windfall

Australian-based global investor Magellan Financial Group (ASX: MFG), which has seen its share price rocket over 350% in the past year, has released an update on its estimated performance fee revenue for the financial year ended 30 June 2013. Magellan said it expected to receive nearly $29 million in fees, compared with $9 million in the prior corresponding period, which is great news for shareholders.

As the Australian Financial Review has reported, fund managers who avoided resource stocks have for the most part managed to outperform their respective benchmarks over the past financial year. With the upcoming reporting season just one month away, shareholders won’t have to wait long to see if they are in line for some windfall profits.

Along with Magellan, Henderson Group (ASX: HGG) a UK-based fund manager which was spun-off from AMP (ASX: AMP) some years ago, has also reported strong earnings from performance fees which were well above many analyst expectations.

The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

Motley Fool contributor Tim McArthur owns shares in Henderson Group and AMP.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.