Why the Magellan Financial Group Ltd share price is rocketing today

Shares in international equities manager Magellan Financial Group Ltd (ASX: MFG) surged 5% to $27.90 reportedly on the back of a broker upgrade to its recommendation on the stock.

Yesterday, Magellan revealed decent monthly net fund inflows of $539 million largely supported by net institutional inflows of $495 million. Net retail inflows totalled just $44 million for the month as the firm continues to navigate the consequences of its 6.25% “loyalty unit” offering to eligible investors in its newly-listed Magellan Global Trust (ASX: MGG).

The group will also hope for a return on its investment via greater retail FUM flows given a substantial marketing investment as the lead sponsor of the 2017/18 Ashes cricket series, although it does not appear to have materialised as  yet in terms of retail FUM flows.

The fund manager also confirmed it will reap $9 million in performance fees for the six-months ending December 31, 2017.

Total funds under management for the month of December slipped to $57.9 billion, compared to $58.6 billion a month earlier. The rapid rise of the Australian dollar over the month the main reason for the FUM fall.

Market conditions could hardly be better for the blue-chip tech investor right now and the group will hand in its half-year results on February 6, 2017.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson owns shares in Magellan Ltd and Magellan Global Trust. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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.