Key Highlights

  • MFG's statutory net profit after tax fell 47% to $88 million for FY26, largely due to Fair Value losses and merger-related expenses.
  • Operating profit after tax declined 9% to $145 million, as a 13% reduction in management fee Revenue was partly offset by growth in Partnership income.
  • Assets under management fell 7% to $36.7 billion, driven by continued net outflows from heritage Global Equities funds.
  • On a combined pro forma basis including Barrenjoey, Group revenue was $778 million and pro forma net profit after tax was $146 million.

Magellan Financial Group Ltd (ASX:MFG) reported its statutory financial results for the year ended 30 June 2026 (FY26), with operating profit after tax falling 9% to $145 million. The company attributed the decline to a 13% reduction in management fee revenue, driven by continued outflows from its Global Equities funds, which was partly offset by a substantial increase in partnership income underpinned by growth at Barrenjoey Capital Partners.

Statutory net profit after tax for MFG fell 47% to $88 million, largely reflecting a $38 million fair value loss on fund investments and $11 million of Merger and integration expenses associated with the Barrenjoey transaction. Assets under management stood at $36.7 billion at year end, down 7%, as institutional inflows into Australian equities, global listed infrastructure strategies and systematic strategies were offset by ongoing net outflows in heritage Global Equities funds. Net client revenue fell 21% to $193.4 million, while partnership income rose 70% to $52.9 million.

Combined Group Pro Forma Performance

Following completion of the merger with Barrenjoey Capital Partners, MFG also presented a combined group pro forma result, which illustrates how the year would have looked had the merger combined both organisations from 1 July 2025. On this basis, consolidated revenue was $778 million, diversified broadly equally across three Business lines: Financial Markets, Corporate Finance and Investment Management.

The combined group's pro forma operating profit after tax was $215 million, with Barrenjoey's operating profit increasing 68% to $112 million, which the company said offset the decline in MFG's own operating profit. Combined group pro forma net profit after tax was $146 million, a figure that includes non-recurring and non-cash items such as fair value movements on Shareholder funds, Barrenjoey legacy share plan amortisation, and merger and integration expenses. The company noted that the pro forma figures are unaudited and presented for illustrative purposes only, and do not represent an indication of performance that would have been achieved had MFG owned 100% of Barrenjoey during the period, nor of results in any future period.

Dividend and Capital Position

The MFG Board declared a final Dividend of 25.5 cents per share, fully franked, based on second-half Earnings of the combined group and representing a Payout Ratio of 80% of operating profit after tax for both businesses. Chairman Mr Benari described 2026 as a transformational year for the company, noting that the results were the first time the group had reported the pro forma performance of the combined, more diversified business spanning Financial Markets, Corporate Finance and Investment Management.

Average assets under management for the year rose slightly to $39.1 billion from $38.4 billion, even as year-end AUM declined. Operating profit after tax per share fell 8% to 82.8 cents, down from 89.8 cents in FY25, reflecting the broader decline in the standalone MFG operating result.

Proposed Name Change to Barrenjoey Group

Subject to shareholder approval at the company's Annual General Meeting on 22 October 2026, MFG intends to change its name to Barrenjoey Group Limited and its ASX ticker to BJY. Management said the new name reflects the scale and ambition of the combined group's business lines. Mr Benari said the company intends to focus on reaching more clients and delivering more products, citing the recently announced New Zealand expansion as an example of this strategy.

In accordance with ASX Listing Rule 3.14, the company also disclosed a change to its registered office and principal administrative office address, effective 4 September 2026, relocating to Quay Quarter Tower, Level 19, 50 Bridge Street, Sydney. The group described itself as a diversified Financial Markets, Corporate Finance and Investment Management firm with more than 590 employees and over $40 billion in assets under management on a combined basis.

Conclusion

Magellan Financial Group's FY26 results reflect the dual dynamics at play within the business: a standalone decline in profit and assets under management tied to continued outflows from its heritage Global Equities funds, alongside a transformational merger with Barrenjoey Capital Partners that materially expands and diversifies the group's earnings base. With the proposed rebranding to Barrenjoey Group Limited pending shareholder approval, the company's future performance will increasingly be assessed on the combined pro forma basis presented across its three core business lines.