Insights

What’s been happening with the Magellan (ASX:MFG) share price?

Magellan Financial Group, long an outperformer, has struggled in recent months. What are analysts saying about the Magellan share price in 2021?
The post What’s been happening with the Magellan (ASX:MFG) share price? appeared first on The Motley Fool Australia. –

asx growth shares represented by question mark made out of cash notes

Iconic Australian fund manager Magellan Financial Group Ltd (ASX: MFG) has a lengthy history of success.

Looking back, 2019 was a particularly strong year for Magellan, with the Magellan share price rocketing more than 158% higher during the calendar year.

Shares in the company, co-founded by Hamish Douglass, reached an all-time closing high on 14 February 2020 of $73.67 per share.

Then came the COVID-19 market panic. By 23 March 2020, the share price had crashed 58%. While shares have recovered strongly from that low, up 68%, the Magellan share price remains down 31% from the 14 February peak. And, so far, it’s been sliding in the new year, down 4% year-to-date in 2021.

Which has many investors wondering, is now the time to buy Magellan shares?

What are analysts saying about the Magellan share price?

After a stellar 2019, the latter quarters of 2020 were certainly not the best for Magellan shareholders.

As the Australian Financial Review (AFR) reports:

Weighing on Magellan’s share price are the below-par fund returns in recent months of its Magellan Global equities fund. At November 30, that fund’s six-month return trailed the index by 8.2 per cent and most likely fell further behind in December as its largest holding Alibaba has sold off.

The AFR also notes that there’s no consensus at this time among analysts on whether or not the stock is a buy, “[b]roadly speaking, analysts are split on Magellan, with three buys, four holds and five sells on the stock.”

With that said, it’s worth having a look at the company’s funds under management and performance fee update, released to the ASX this morning.

Magellan reported that in December it had $579 million of net inflows, comprised of $252 million in net institutional inflows and $327 of net retail inflows. The company stated it will pay distributions of roughly $132 million in January.

The company also revealed it is entitled to performance fees of around $12 million for the 6-month period ending 31 December.

Magellan Financial Group company snapshot

Magellan is a funds management business that invests in some of the world’s top companies. Magellan’s investment team manages global equity and infrastructure strategies to high net worth and retail investors in Australia, New Zealand and institutional investors globally.

Magellan shares began trading on the ASX in 2004 and it is now part of the S&P/ASX 200 Index (ASX: XJO). On current prices, the company pays a 4.2% dividend yield, 75% franked.

Where to invest $1,000 right 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.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s been happening with the Magellan (ASX:MFG) share price? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!