Here’s why the Magellan Financial Group Ltd (ASX:MFG) share price is on the move on Wednesday morning…
The post Here’s why the Magellan (ASX:MFG) share price is pushing higher today appeared first on Motley Fool Australia. –
The Magellan Financial Group Ltd (ASX: MFG) share price is on the move on Wednesday morning.
At the time of writing the fund manager’s shares are up 1% to $59.59.
This means the Magellan share price is now up 19.9% over the last 12 months from $49.70.
Why is the Magellan share price on the move on Wednesday?
This morning Magellan released its latest funds under management (FUM) update for the month of September.
According to the release, Magellan experienced net inflows of $1,198 million in September. This included net retail inflows of $239 million and net institutional inflows of $959 million.
This ultimately led to the fund manager’s FUM increasing 1.2% month on month to a total of $102,088 million. This comprises Institutional FUM of $74,397 million (up 1.4% month on month) and Retail FUM of $27,691 million (up 0.7%).
Where in the market is the money heading to?
Australian equities were out of favour with Magellan’s investors in September. The total FUM invested in this side of the market fell 3.1% during the month to $7,158 million.
Global Equities continue to be the most popular destination for its FUM, with $77,655 million invested here. This is a 0.7% month on month increase and represents 76% of its total FUM.
However, the area of the market where the majority of its inflows went last month was Infrastructure Equities. The total FUM invested here lifted 5.6% during the month to $17,275 million.
Investors appear confident that infrastructure is the place to be right now as governments invest heavily in the space to reignite their economies following the pandemic.
The Magellan Infrastructure Fund has been designed to provide investors with efficient access to the infrastructure asset class, while also protecting capital in adverse markets. It invests in the likes of Atmos Energy, Xcel Energy, and Transurban Group (ASX: TCL).
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
- 3 ASX shares I want to buy in October
- How to generate $50k a year from ASX dividends
- Top ASX Stock Picks for October 2020
- 3 ASX 200 passive investing shares to buy today
- 3 reasons to buy Magellan (ASX:MFG) today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.