Here's why the Magellan (ASX:MFG) share price is pushing higher today

Here's why the Magellan Financial Group Ltd (ASX:MFG) share price is on the move on Wednesday morning…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Magellan Financial Group Ltd (ASX: MFG) share price is on the move on Wednesday morning.

At the time of writing the fund manager's shares are up 1% to $59.59.

This means the Magellan share price is now up 19.9% over the last 12 months from $49.70.

Why is the Magellan share price on the move on Wednesday?

This morning Magellan released its latest funds under management (FUM) update for the month of September.

According to the release, Magellan experienced net inflows of $1,198 million in September. This included net retail inflows of $239 million and net institutional inflows of $959 million.

This ultimately led to the fund manager's FUM increasing 1.2% month on month to a total of $102,088 million. This comprises Institutional FUM of $74,397 million (up 1.4% month on month) and Retail FUM of $27,691 million (up 0.7%).

Where in the market is the money heading to?

Australian equities were out of favour with Magellan's investors in September. The total FUM invested in this side of the market fell 3.1% during the month to $7,158 million.

Global Equities continue to be the most popular destination for its FUM, with $77,655 million invested here. This is a 0.7% month on month increase and represents 76% of its total FUM.

However, the area of the market where the majority of its inflows went last month was Infrastructure Equities. The total FUM invested here lifted 5.6% during the month to $17,275 million.

Investors appear confident that infrastructure is the place to be right now as governments invest heavily in the space to reignite their economies following the pandemic.

The Magellan Infrastructure Fund has been designed to provide investors with efficient access to the infrastructure asset class, while also protecting capital in adverse markets. It invests in the likes of Atmos Energy, Xcel Energy, and Transurban Group (ASX: TCL).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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 Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »