The Magellan Financial Group Ltd (ASX: MFG) share price is marching higher during the lunch hour on Wednesday.
Magellan shares closed yesterday at $14.56. They are currently trading for $14.85, up 1.96% after earlier posting gains of almost 5%.
Here’s what looks to be piquing ASX investors’ interest in the specialist funds manager today.
Barclays ups investment in Barrenjoey
The Magellan share price is in the green today. It follows an announcement that British headquartered bank Barclays has invested another $75 million cash in Aussie financial services firm Barrenjoey.
Magellan launched Barrenjoey in September 2020. Barclays invested $45 million in the start-up at the time.
The increased investment by Barclays sees Magellan’s shareholdings of Barrenjoey slip to 36.4% from 40%. It brings Barclays’ holdings up to 18.2% from 9.9%.
Magellan said it remains “committed to the long-term success of Barrenjoey”.
What did management say?
Commenting on the $75 million cash investment, Paul Compton, president of Barclays Bank, said:
We are delighted to have the opportunity to increase our shareholding with Barrenjoey. Since our foundation investment in September 2020, Barrenjoey management has delivered on their plans and we have a strong working relationship across our respective platforms.
Providing global solutions and products to the Australian client base is at the core of our strategic partnership and this investment will only strengthen it further.
Brian Benari, CEO of Barrenjoey, added:
Our strategic partnership with Barclays has been instrumental to our early success, leveraging their global investment banking and securities franchises and balance sheet.
Importantly, given the rapid growth of our Markets business and the launch of our Fixed Income Derivative and Equity Financing businesses, Barclays’ investment further reinforces our joint commitment to support our Australian and global client base.
Magellan share price snapshot
The Magellan share price has sold off sharply over the past 12 months, down 68%. That compares to a 1% gain posted by the S&P/ASX 200 Index (ASX: XJO) over the full year.
The post Why is the Magellan share price marching higher today? appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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