MFG -5.87%: it’s been a difficult year at Magellan, and it showed in their results. NPAT for the year was $399.7m, down 3% and a small miss to expectations. The market took issue with margins which fell to ~62bps in the second half, after running at 65bps at the end of the first half, despite a larger portion of funds being held by retail clients which typically have higher margins. The balance sheet is strong with $420m in cash so the company has the capacity to drive better performance. The new CEO will need to prove his worth though, the market is looking for more detail on their strategy.
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