In morning trade the Magellan Financial Group Ltd (ASX: MFG) share price has pushed higher.
At the time of writing the fund manager's shares are up 0.5% to $50.15.
Why is the Magellan share price pushing higher?
Investors have been buying the fund manager's shares this morning following the release of its funds under management update for the month of October.
According to the release, during October, Magellan experienced net inflows of $1,385 million. This was inclusive of net retail inflows of $1,125 million and net institutional inflows of $260 million.
This lifted its retail funds under management by 4.5% month on month to $25,396 million. Whereas its institutional funds under management rose by 0.5% month on month to $68,148 million.
At the end of the period, Magellan's total funds under management reached $93,544 million. This was an increase of 1.6% over the previous month.
Why did retail funds jump in October?
The catalyst for this 4.5% increase in retail funds under management during October was the launch of the Magellan High Conviction Trust.
This was well-received by investors and led to the company raising a massive $862 million.
Magellan's chairman and chief investment officer, Hamish Douglass, was happy with the response.
He said: "We are very pleased with the successful initial public offering for the Magellan High Conviction Trust which has raised approximately $862 million. We received applications from approximately 17,000 investors participating in the Priority Offer and 1,800 investors participating through the General Public and Wholesale Offers."
Mr Douglass added: "We welcome each and every investor and look forward to continuing our partnership over the years to come. We firmly believe our partnership approach is a win-win outcome for our investors and Magellan shareholders."
Also in the news today is fellow fund manager Pendal Group Ltd (ASX: PDL). Its shares have tumbled lower after the release of its full year results. That release saw Pendal report a 19% decline in cash earnings per share due to a collapse in performance fees.
