Magellan Financial Group Ltd
MFG Dividend Details
Improving performance for funds under management: Magellan Financial Group Ltd (ASX: MFG) stock generated a year to date returns of 35.37% (as of November 06, 2015) partly driven by its improving funds under management performance. For the month of October 2015, funds under management surged to $40.48 billion while global equities rose to $34.46 billion (from $32.87 billion of September) and infrastructure equities jumped to $6.02 billion as opposed to $5.83 billion of September 2015. The company reported net inflows of $107 million. In September 2015, funds under management rose to $38.7 billion as compared to $38.1 billion in August 2015. Inflows from North American institutional clients have depicted good growth.
Funds Management Business (Source: Company Reports)
Meanwhile, Magellan Global Fund delivered 29.5%, after fees, during the twelve months to 30 June 2015, beating the MSCI World Net Total Return Index (AUD) by 4.9%. MFG entered into new agreements with AMP and BT/Westpac who have launched new funds in their respective platforms replicating the Magellan Global Fund, similar to the Colonial First State Magellan Global Fund Option (CFS) on the Colonial First State Platform (operated by Commonwealth Bank). On the other hand, Magellan also delivered decent FY15 financial performance with revenues rising to $255.9 million during the fiscal year of 2015, against $139.1 million in the last fiscal year. Therefore, the fund’s under management profit before tax rose to $203.3 million during the period as compared to $102.5 million in prior corresponding period (pcp). With the MFG stock surging around 12.23% in the last four weeks, we believe this positive momentum to continue in the coming months, and accordingly place a BUY recommendation on the stock at the current price of $22.58
MFG Daily Chart (Source: Thomson Reuters)
Platinum Asset Management
PTM Dividend Details
Solid investment performance Contribution: Platinum Investment Management Ltd which trades as Platinum Asset Management Limited (ASX: PTM ) surged over 6.37% (as of November 06, 2015) in the last four weeks driven by its better FY15 results and solid platinum Asia Investments listing response. PTM’s funds under management rose to $28.01 billion against $26.68 billion of September 2015. The group successfully raised over $292.9 million for platinum Asia Investments Limited.
Inflows and net flows performance (Source: Company Reports)
On the other hand, Platinum international fund delivered a return of 13.4% since its inception, as compared to the MSCI All country world net index returns of 6.4%. The group enhanced its average funds under management by 17.3% year on year (yoy) to $26.1 million during the fiscal year of 2015 and reported a revenue increase by 12.7% yoy to $360.4 million in FY15, against $319.8 million in FY14, boosted by 19% yoy increase of management fee to $338.6 million during the period. PTM shares have the potential to increase further in the coming months given the group’s efforts with regards to increasing exposure in Asia coupled with declining Australian dollar which would enhance the FUM value further. Platinum Asset Management also has a decent dividend yield of 4.93% and has a reasonable P/E of 20.49x as compared to its peers. We maintain our BUY recommendation on the stock at the current price of $7.51
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
Copyright
Copyright © 2014 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.
Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.