ETF Flows – Magellan Global Fund outflows the standout

This report details ASX-listed ETF flows, as at 31 January 2022. The data is based on the value of existing units redeemed (outflows) plus new units created (inflows).it is not based on FUM values which, by being partly based on ETF / market price moves, is not a true indicator of flows (which is a true indicator of investor sentiment to either a particular ETF, manager, or market segment).

Magellan Outflows

Not surprising, Magellan recorded a material quarterly outflow in the Magellan Global Fund (Open Class) of $559m while the Magellan High Conviction Fund (MHHT) recorded outflows of $50m. In the scheme of things, this may be a relative drop in the ocean given Magellan’s total FUM, but this story has yet to entirely play out (investor sentiment, potential portfolio changes, potential style drift, team stability given past issued incentives may well be under water, ratings downgrade risk, etc) and the outflows is certainly contrary to the ETF industry dynamic of FUM growth.

Pinnacle Flows masks Antipodes (AGX1) Outflows 

AGX1 recorded outflows of $68m in January alone. This equates to a 15% outflow from what was APL. We have previously pointed to the outflow risk of the conversion of a LIC/LIT to an ETMF. This outflow may simply be a temporary dynamic, specifically many prior investors in APL taking the opportunity to exit as NTA (vs what was a sustained and material discount to NTA in APL). We suspect this will be the case but it is interesting to note that the outflows in January occurred in a month when equities were favouring the Value / Quality investment style that Antipodes specialises in. It may also be a shame that AGX1 can not engage in shorting (APL could and did), just as shorting became a lot more prospective after several years of being a very difficult market environment for fundamental shorting.

Impressive ETF Growth in January 

The ETF industry positive flows result for January 2022 is impressive given the ructions in both equities and bond markets globally. The industry witnessed a similar dynamic during the June 2020 quarter where the industry continued to grow despite the severe market dislocation event.

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Click on the pdf below to access:

• Quarterly and Last Month flows by:
• ETF Sector;
• Major Issuers;
• Top / Bottom 20 ETF by In/Outflows.