Magellan's profit slumps, dividend down
Australian fund manager Magellan Financial Group has disappointed investors with a slump in profit and a smaller dividend.
Net profit fell 33 per cent to $265.2 million for 2020/21 and the total dividend for the year is down 2 per cent to 211.2 cents per share.
Savaging the share price, the annual performance fee dividend dropped almost two-thirds to 11.5 cents per share.
Magellen is one of the worst performing stocks on the Australian market on Tuesday, down 10 per cent at $46.39 in late trade.
A future bankrolled by financial technology, Mexican takeaways and investment banking is the focus for Magellan chief executive Brett Cairns.
Magellan is focused on three new strategic investments: fintech company FinClear, Mexican restaurants Guzman y Gomez and homegrown investment bank Barrenjoey Capital Partners.
"We are excited by their future prospects," Dr Cairns said.
And while other household names record investor outflows, Magellan's funds management business continues to perform strongly and has surged past $100 billion managed for retail and wholesale investors.
Retail funds under management increased 15.4 per cent to $30.9 billion, while the institutional arm surged 17.9 per cent to $83 billion.
