FUM update day sometime next week - I don’t know exactly which...

FUM update day sometime next week - I don’t know exactly which day - but the jackals do. They have it circled on their calendars.

On FUM update day morning the usual jackals will be up early salivating while having their toast and coffee…..then once the FUM update comes through they’ll pipe up with their predictable comments….or will they? Will this be the FUM update to silence them?

Here is this years performance of the flagship Magellan Fund - the Magellan Global Fund (MGF)




A 15% capital gain and a 4%-5% annualised dividend. This has been a pretty good place to have your money in 2023 and should be starting to support the MFG stock price. The fact that it has a nice little exposure to AI (through US big tech) is part of the reason.

The compulsion to pull funds out of Magellan can’t be as strong as it has been. However as is the case right now with PwC - a ‘pile on’ quickly gets going once people just want to disassociate with a brand. Magellan has been hammered way beyond what is actually rational. The outflows from its funds have continued despite the graph above. Funds that have been pulled from the global fund in 2023 have in every likelihood landed somewhere where the returns haven’t been as good as if they’d just stuck MGF.

The next FUM update will be interesting. Another $2b or $3b of outflows wouldn’t make a lot of sense - but you wouldn’t bet against it.