Rask summarised the story well :A key part of the statutory...

Rask summarised the story well :
A key part of the statutory profit decline came from costs relating to strategic initiatives of $154.1 million, which primarily related to the restructuring of its global shares retail funds that completed in December 2020 and the associated partnership offer and bonus option issue that completed in March 2021. These moves are aimed to increase long-term profitability and the ‘stickyness’ of its funds under management (FUM).Profit before tax and performance fees of the funds management business grew 10% to $526.6 million, with the average FUM increasing 9% to $103.7 million. This shows that Magellan’s core underlying profitability continues to rise. The cost to income ratio of the funds management business continues to improve. However, adjusted net profit after tax fell 6% to $412.7 million. This includes the after-tax losses incurred by the investments of ‘Magellan Capital Partners’, which were $41.8 million. The losses were incurred to grow the businesses as they invest and build operations – those losses are non-cash items to Magellan.Magellan (Capital Partners) made three external investments during the year, including new investment bank Barrenjoey and Mexican fast food business Guzman y Gomez. It spent $156 million on a 40% economic interest (and 5% voting interest) in Barrenjoey and $103 million for a 12% stake in GYG.The fund manager believes that these investments have the potential to add to its intellectual capital, provide meaningful optionality and diversification and, importantly, generate “substantial” shareholder value over time. Adjusted net profit after tax and before associates/investments grew 4% to $454.4 million.

I am in this company for the long haul and happy to see returns hit if for good investment long term. Regardless of the major new investments the data showed that Magellan’s core underlying profitability continues to rise.