ASX Financials Stocks: Magellan falls after sudden CEO departure, while three other stocks release trading updates
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Magellan (ASX:MFG) shareholders were left with a bombshell last night as CEO Brett Cairns departed the company.
While Cairns only became CEO since 2019, he has been with the company since 2007 and an executive since 2015. The company simply said he left for “personal reasons” and would be replaced by CFO Kirsten Morton as interim CEO.
He departs owning ~1.178 million shares worth over $35 million at today’s share price of $30.07, along with stakes in a handful of other ASX-listed funds by Magellan.
It came just a day after the company unveiled 1% growth in funds under management – from $114.8 billion to $116.4 billion in the month of November.
While Magellan shares are up 13% in three years they are well down from the $73.67 peak reached in February 2020, and today dropped by another 2.5%.
Conversely, one of its rivals on the ASX, Pinnacle (ASX:PNI), is up 135% in the past two years.
Three other ASX financial companies released performance updates with one being Bank of Queensland (ASX:BOQ).
The bank, which is holding its AGM today, said it had experienced net interest margin headwinds in the September quarter as a result of tougher trading conditions, yield curve volatility and increased fixed rate lending.
While these trends will result in a lower margin than expected, it also tipped 1% lower expenses and a positive Jaws ratio. (A bank’s Jaws ratio demonstrates that it is effectively generating more income over time than expenses).
Meanwhile, GQG Partners (ASX:GQG), a US asset manager which only listed on the ASX recently, reported a 3.4% drop in funds under management – from US$90.4 billion to US$87.3 billion.
While US equities slightly increased in value, its other international equities fell by US$1.9 billion.
Its shares are down by ~12% since its IPO – which was the biggest of 2021.
Since June 30, 2021 its loan book has grown 31.3% from $3.52 billion.
Nevertheless, the company warned shareholders not to expect linear growth.