In morning trade the Magellan Financial Group Ltd (ASX: MFG) share price is pushing higher.
At the time of writing the fund manager's shares are up 1.5% to $60.19.
This latest gain extends Magellan's 12-month gain to a very impressive 155%.
Why is the Magellan share price pushing higher?
Investors have been buying Magellan's shares again after it reported further fund inflows during the month of December.
According to the release, in December, Magellan experienced net inflows of $469 million. This comprised net retail inflows of $282 million and net institutional inflows of $187 million.
However, due to unfavourable market movements and exchange rates, the company reported a small decline in its funds under management at the end of the period. Magellan's total funds under management fell 0.2% to $97,516 million.
This brought its funds under management average for the six months ending December 2019 to a total of $92,770 million. This compares to an average of $72,100 million in the prior corresponding period.
Performance fees update.
The end of December brings the end of the first half for Magellan. This means it is now able to calculate the performance fees for the period.
Today's release reveals that its first half performance fees are expected to be approximately $42 million. This will be a small decline on the $42.7 million it recorded in FY 2019's interim results.
Which, given the $20 billion increase in funds under management over the last 12 months, is a touch disappointing. Though, not enough to stop investors from picking up shares this morning.
One broker that warned that its performance fees could disappoint was Goldman Sachs.
As I pointed out recently, the broker was concerned that there was a risk to its performance fees following a mildly negative relative performance for most key global equities products. It has a sell rating and $40.69 price target on the company's shares.
