In morning trade the Magellan Financial Group Ltd (ASX: MFG) share price is storming higher.
At the time of writing the fund manager’s shares are up 4% to $51.18.
This latest gain means that Magellan’s shares have now risen a whopping 119% since the start of the year.
Why is the Magellan share price storming higher?
As well as receiving a boost from a share market rebound today, investors have been buying Magellan’s shares following its latest funds under management update.
That update revealed yet another jump in total funds under management for Magellan during the month of November.
During the month Magellan’s Retail funds increased by 5.2% to $26,710 million. Similar growth was seen with its Institutional funds which grew 4.2% to $71,005 million.
Whilst favourable market movements played a key role in this increase, it was supported by further strong net inflow.
In November, Magellan reported net inflows of $410 million. This included net retail inflows of $305 million and net institutional inflows of $105 million.
This ultimately led to a 4.5% or ~$4.2 billion increase in total funds under management to $97,715 million.
Which funds is the money pouring into?
The company’s key Global Equities segment saw the largest increase in funds under management during November. Global Equities reported funds of $71,814 million, up 4.9% since the end of October.
Also growing strongly was its Australian Equities segment. Its funds under management lifted 4.3% to $8,302 million during the month.
Supporting this was the Infrastructure Equities segment. It reported funds under management of $17,599 million at the end of November. This was an increase of 2.8% on October’s funds under management.
Also in the news today is rival Australian Ethical Investment Limited (ASX: AEF). Its shares are racing higher after it provided guidance for FY 2020.
It expects to report first half profit growth of around 38.7% thanks to strong growth in its funds under management.
The post Magellan share price storms higher after strong FUM growth appeared first on Motley Fool Australia.
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