Magellan Financial Group announces acquisitions

Company News

by Kathy Skantzos

Magellan Financial Group (ASX:MFG) has today announced two acquisitions worth US$15 million in cash and 4.5 million in Magellan shares.

The acquisitions include equities fund manager Airlie Funds Management, which has over AU$6 billion in funds under management, and Frontier Partners Group, which has been a Magellan distribution partner in North America since 2011 with AU$12.8 billion in funds under management.

The company says the acquisitions will diversify and strengthen its retail funds management business in Australia and add significant focus to its institutional distribution activities in North America.

Airlie Funds Management and Magellan intend to launch together the Airlie Industrial Share Fund which will be an active EFT quoted on ASX.

This announcement comes as the company reports a 25 per cent increase in underlying profit after tax, which results in a 39 per cent profit loss after costs associated with the Magellan Global Trust offer.

The company’s interim dividend is up 16 per cent to 44.5 cents per share.

Shares in Magellan Financial Group (ASX:MFG) are trading 5.68 per cent lower at $25.39.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.