Why the Magellan share price is now up 126% in a year

Magellan Financial Group Ltd (ASX: MFG) is the best performing stock on the ASX 100 this year.

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The Magellan Financial Group Ltd (ASX: APX) share price climbed around 1.6% to a record high of $53.70 today despite the Sydney-based international equities manager not releasing any specific news to the market. Magellan shares are now up around 126% plus fully franked dividend payments of $1.68 over just the past 12 months to mean the fundie is closing in on a $10 billion valuation. 

The stock is probably rising today on the back of the US S&P 5oo and Nasdaq indices of leading US companies hitting record highs this week with Magellan investing particularly heavily in the blue-chip tech sector.

The end of the financial year and performance track records also means analysts may be running the numbers on final performance fees that now directly contribute to the amount of Magellan's final performance fee linked final dividend. 

Magellan is likely to reveal total funds under management (FUM) as at June 30 2019 in the next few trading days with total FUM recently sitting around $82.8 billion, which compares to $63.3 billion at the same time last year. 

Its FUM growth has left other equity managers such as Perpetual Limited (ASX: PPT) in its wake.

Motley Fool contributor Tom Richardson owns shares of Magellan Financial Group. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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