Magellan Financial Group Ltd (ASX: MFG) today announced that it had recorded month-to-date net fund inflows of $1.335 billion taking its total funds under management (FUM) to $24.91 billion. The group announced that $1.17 billion of the month-to-date inflows were from institutional business wins. Magellan's meteoric rise has been founded on a strong track record of investment performance and growing FUM through net inflows.
Institutional business development remains key to the net fund inflows and today's news suggests the institutional business development team is back into top gear after a relatively lean few months. Fund managers charge fees as a proportion of FUM, so FUM growth via net inflows is critical to growing revenues and profits.
Those with the best sales and distribution teams tend to outperform when backed up by strong investment teams. This in part is because the sales and distribution team is able to make a much stronger case for winning business when it can seduce potential clients with presentations showing just how strong past investment performance has been.
Others in the global funds management game competing with Magellan include Platinum Asset Management Limited (ASX: PTM), AMP Limited (ASX: AMP) and Colonial First State, the asset management arm of the Commonwealth Bank of Australia (ASX: CBA).
Selling for $12.02 after today's jump, Magellan remains priced for growth, but if the institutional business development team keeps on delivering then Magellan looks a strong future bet.
