The full impact of Magellan underperformance is only starting to be visible now in terms of outflow as Financial Planners are mandated to apply the Best Interest Duty for their clients money. They are reacting a lot quicker and need to do so otherwise they will be pursued by ASIC. No Financial Planner can make a case of investing in a fund that is earning 10% versus a 26% return against the benchmark, most active managers beat index by 10%. May as well put money in a Vanguard ETF.
Underperformance and pressure to keep FUM will trigger fee reset with a majority of customers, potentially wiping out about $50M to $100M from fee revenue if FUM is retained. This will flow through to NPAT if costs are not lowered.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)