Magellan Financial Group Ltd (ASX: MFG) shares are pushing higher on Friday.
In morning trade, the fund manager's shares are up 4% to $9.77.
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Why are Magellan shares rising?
Investors have been buying the company's shares on Friday following the release of its latest funds under management (FUM) update.
According to the release, Magellan reported a 1.7% month-on-month increase in total FUM to $35.8 billion. This reflects flat retail FUM of $16.7 billion and a 3.2% increase in institutional FUM to $19.1 billion.
Investors don't appear concerned that this increase is well short of the 7% gain made by the ASX 200 index during the period 30 November to 31 December. Even after factoring in the stronger Australian dollar and its net outflows, this appears to indicate that its investment strategies underperformed the market during the month.
Speaking of outflows, in December, Magellan experienced net outflows of $0.2 billion. This reflects net retail outflows of $0.3 billion and net institutional inflows of $0.1 billion.
Over the 12 months, Magellan's FUM has fallen 21% from $45.3 billion.
Performance fees
Also failing to hold back Magellan's shares was an update on its performance fees for the first half of FY 2024.
The release reveals that the company's performance fees for the six months ended 31 December 2023 will be immaterial.
What this means for its dividends is unknown. Investors will need to wait and see when the fund manager releases its half year results during next month's earnings season.
