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.