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.
