The Mesoblast limited (ASX: MSB) share price surged this morning after the biotech company announced positive drug trial results.

Mesoblast shares stormed almost 9% higher in early trading before retreating through the morning. At the time of writing, the Mesoblast share price is up 2.54% at $2.62.

Drug trial success

In today’s release, the company detailed significant results for its phase 3 chronic lower back pain trials.

Mesoblast reported that a single injection of its drug rexlemestrocel-L may provide “safe, durable, and effective” therapy for patients with chronic inflammatory back pain due to degenerative disc disease. Furthermore, the results showed the treatment was long-lasting in combination with hyaluronic acid (HA) carrier, resulting in at least two years of pain reduction.

The 24-month trial also found that the drug has the most significant benefits when administered earlier in the disease process before the intervertebral disc has irreversible fibrosis.

Management comments

Commenting on the results, Mesoblast CEO Dr Silviu Itescu said:

The durable pain reduction for at least two years from a single administration indicates that rexlemestrocel-L has the potential to change the treatment paradigm for chronic low back pain due to inflammatory disc disease, a condition that affects as many as seven million patients across the United States and Europe, and to prevent or reduce opioid use and dependence.

Tackling chronic back pain

The company said chronic low back pain (CLBP) was a disabling condition affecting some 10-15% of the adult population. As such, Mesoblast estimates the addressable market for rexlemestrocel at approximately 30 million people in the United States and 40 million people across the European Union.

According to a World Health Organisation (WHO) study, back pain causes more disability than any other condition and inflicts substantial costs on healthcare systems worldwide. There are few treatments for patients suffering from CLBP, with most having to use opioids to manage their pain. Remarkably, despite 50% of opioid prescriptions being for CLBP, they have still not formally demonstrated efficacy in treating the disease.

According to the Centers for Disease Control and Prevention, more than 67,000 drug overdose deaths occurred in the United States in 2018, of which almost 47,000 (70%) were opioid-related.

The US Food and Drug Administration (FDA) has prioritised its focus on new therapeutics that target both pain reduction and opioid avoidance, a mould which fits Mesoblast’s rexlemestrocel-L treatment.

About the Mesoblast share price

The Mesoblast share price has been impacted by announcements, including its recent COVID-19 trial update and short-sellers targeting the company.

As such, Mesoblast shares have fallen 7.64% over the past 12 months, trailing behind the flat return of the All Ordinaries Index (ASX: XAO).

More reading

• Why Mesoblast, Newcrest, Sezzle & Telstra shares are racing higher
• Why the Optiscan (ASX:OIL) share price is going gangbusters
• Here are the 10 most shorted shares on the ASX
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• Here’s why the Tombador (ASX:TI1) share price is rocketing 35% higher

Motley Fool contributor Daniel Ewing 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 Bruce Jackson.

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The Nearmap Ltd (ASX: NEA) share price has come under significant selling pressure on Thursday.

In late morning trade the aerial imagery technology and location data company’s shares were down 7% to $2.16 before being hurried into a trading halt.

Why is the Nearmap share price under pressure today?

Investors were selling Nearmap shares this morning following the release of a short seller report by Hong Kong-based J Capital Research.

J Capital has previously targeted Harvey Norman Holdings Limited (ASX: HVN) and WiseTech Global Ltd (ASX: WTC).

Why Nearmap?

According to the note, J Capital alleges that Nearmap is struggling in the U.S. market and using accounting tricks to hide this. It commented:

“Nearmap repeatedly assures investors it deserves a heady share price because of high growth and coming profits in the U.S. market. Actually, the company is laying off sales staff and offering discounts in a panicked attempt to improve margins, kneecapping its efforts to grow.”

“Nearmap is apparently trying to hide its U.S. failure with accounting tricks to pull forward revenue. Without that seemingly aggressive revenue recognition, we believe revenue growth in the U.S was less than half what was reported.”

J Capital claims to have spoken to five competitors, seven former employees, and 17 clients or prospective clients. From this, it found that “losses are widening, gross margins are going backwards, and competitors are crushing them.”

It added:

“Critical clients are dropping the service. We spoke with several counties that had reviewed or trialed Nearmap services but ultimately renewed with Eagleview. We learned in an interview that Maricopa County, Arizona—which is featured in Nearmap subsidiary Pushpin testimonials—trialed Nearmap service but still renewed with Eagleview.”

Another point that J Capital made related to its churn levels in the United States. It estimates that Nearmap has churned 28% of its current clients since entering the North America market.

The analysts explained:

“That means that more than one in five clients who have trialed the service has chosen not to use it. The company misrepresents the churn.”

What now?

The Nearmap share price is in a trading halt pending the release of a response to the report.

This response is expected to be released on Monday. All eyes will be on Nearmap shares following that release.

More reading

• 3 stellar ASX growth shares to buy today
• ASX 200 rises 1%, Zip soars, REA reports
• Top ASX shares to buy in February 2021
• Leading broker names Nearmap (ASX:NEA) as a buy
• 5 things to watch on the ASX 200 on Monday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BARD1 Life Sciences Ltd (ASX: BD1) share price is up an eye-popping 66% at the time of writing. That’s down a bit from gains of more than 87% in early morning trade.

Investor interest appears to be driven by the company’s positive announcement on its ovarian cancer test. Let’s take a closer look at the announcement and what it means for the BARD1 share price.

What did BARD1 report on its cancer test?

BARD1 released a report to the ASX this morning stating that it’s SubB2M technology is able to detect all stages of ovarian cancer.  The data was collected from Griffith University’s Institute of Glycomics. It indicates the technology is able to do this with 100% specificity and 100% sensitivity.

SubB2M is a protein that binds to a sugar molecule called Neu5Gc. This protein is present in a range of cancers. The company reported that researchers from the University of Adelaide and Griffith University have proven its ability to detect Neu5Gc in cancer patients’ bloodstreams.

BARD1 holds the exclusive worldwide license for the use of SubB2M to detect any cancer.

Dr. Lucy Shewell from Griffith University’s Institute for Glycomics concluded that detection of Neu5Gc-glycans using SubB2M can potentially be used as a diagnostic marker to detect early-stage ovarian cancer. She said it may also be a useful tool to monitor disease progression in late-stage cancer.

Comments from the CEO

Addressing the positive results, BARD1’s CEO, Dr. Leearne Hinch, said:

The company is focused on early detection of cancer and our SubB2M technology provides the potential for developing tests for monitoring and detection of multiple cancers. We will continue to collaborate with Griffith University to develop and validate commercial assays for monitoring treatment response and recurrence in ovarian cancer patients to improve health outcomes for this critical unmet medical need.

The company also stated that ovarian cancer remains the leading cause of gynaecological cancer deaths worldwide. This statement highlights the potential benefits of its SubB2M test. In 2018 there were 185,000 deaths from ovarian cancer. Ovarian cancer often progresses to a late-stage before diagnosis. This means the current 5-year survival rate is only 46%.

BARD1 share price snapshot

The BARD1 share price has a lengthy history of volatility, even without the 49% share price crash during last autumn’s COVID-driven market rout. With today’s intraday gains factored in, the BARD1 share price is up 88% in 2021.

By comparison, the All Ordinaries Index (ASX: XAO) is up just over 2%.

More reading

• ASX 200 down 0.1%: Telstra update impresses, AMP sinks, Newcrest jumps
• Why Mesoblast, Newcrest, Sezzle & Telstra shares are racing higher
• Why the AMP (ASX:AMP) share price is tumbling 9% today
• Why is the ASX Ltd (ASX:ASX) share price slipping today?
• Why AMP, Ecofibre, Magellan, & Vita shares are sinking today

Motley Fool contributor Bernd Struben 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 Bruce Jackson.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. The benchmark index is currently down 0.1% to 6,849.9 points.

Here’s what is happening on the market today:

Telstra share price higher on half year update

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher on Thursday following the release of its half year results. The telco giant reported a 10.4% decline in total income to $12 billion and a 14.2% reduction in underlying EBITDA to $3.3 billion. The latter was largely due to an estimated in-year NBN headwind of $370 million and an estimated $170 million impact from COVID-19. Positively, Telstra’s free cash flow was strong, allowing the board to maintain its 8 cents per share dividend. It also confirmed that it plans to maintain its fully franked full year dividend of 16 cents per share.

AMP share price sinks

The AMP Ltd (ASX: AMP) share price is sinking today after releasing its full year results and revealing a sharp reduction in profits. For the 12 months ended 31 December, the financial services company reported an underlying net profit after tax of $295 million. This was down 33% on the prior corresponding period. According to the release, AMP’s result reflects the impacts of COVID-19 on its clients, its business, and the broader economy and financial markets.

AGL posts $2.3 billion half year loss

The AGL Energy Limited (ASX: AGL) share price is trading slightly higher today despite posting a massive half year loss. For the six months ended 31 December, the energy company recorded a statutory loss after tax of $2.3 billion. This was due to previously announced onerous contract provisions and impairment charges of ~$2.7 billion. On an underlying basis, profit after tax fell 27% to $317 million. This includes $74 million of insurance receipts relating to FY 2020’s Loy Yang Unit 2 outage.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Newcrest Mining Ltd (ASX: NCM) share price with a 5.5% gain. This morning the gold miner reported a 98% jump in half year underlying profit to US$553 million. The worst performer has been the AMP share price with a 9% decline following its full year results release.

More reading

• Why Mesoblast, Newcrest, Sezzle & Telstra shares are racing higher
• Why the AMP (ASX:AMP) share price is tumbling 9% today
• Why AMP, Ecofibre, Magellan, & Vita shares are sinking today
• Why the Newcrest Mining (ASX:NCM) share price is up 5%
• Why the Vita (ASX:VTG) share price is crashing 31% lower today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been a bumpy ride for the S&P/ASX 200 Index (ASX: XJO) on Thursday. After a number of ups and downs, in late morning trade the benchmark index is down slightly to 6,852.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are racing higher:

Mesoblast limited (ASX: MSB)

The Mesoblast share price is up 4.5% to $2.68 following the release of a trial update. According to the release, the results of a phase three trial indicate that a single injection of rexlemestrocel-L may provide a safe, durable, and effective opioid-sparing therapy for patients with chronic inflammatory back pain due to degenerative disc disease. The study notes that the greatest benefits were seen when administered earlier in the disease process before irreversible fibrosis of the intervertebral disc has occurred.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price has climbed 5.5% to $26.61. This follows the release of the gold miner’s half year results this morning. For the six months ended 31 December, Newcrest reported a 21% increase in revenue to US$2.17 billion. Things were even better on the bottom line, with the company reporting a 98% jump in underlying profit to US$553 million. This was driven by a 48% increase in its all-in sustaining cost (AISC) margin to US$842 per ounce.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up 4.5% to $10.97. Investors have been buying the buy now pay later provider’s shares following the announcement of a new receivables funding facility. The US$250 million facility will be used to support the expansion of the company’s business in the United States and Canada. Positively, the new facility also lowers its cost of funding, which will provide a positive effect on Sezzle’s net transaction margin over time.

Telstra Corporation Ltd (ASX: TLS)

The Telstra share price is up almost 3% to $3.26. The catalyst for this was the release of a solid half year result this morning. Investors appear pleased that the Telstra board plans to maintain its 16 cents per share fully franked dividend in FY 2021. Management’s bold growth plans also appear to have caught the eye of investors.

More reading

• Why AMP, Ecofibre, Magellan, & Vita shares are sinking today
• Why the Newcrest Mining (ASX:NCM) share price is up 5%
• Here’s why the Sezzle (ASX:SZL) share price is surging 6% higher today
• Why the Vita (ASX:VTG) share price is crashing 31% lower today
• 4 steps to pick winning ASX shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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AMP Ltd (ASX: AMP) shares opened sharply lower this morning following the release of the company’s FY20 results. At the time of writing, the AMP share price is trading at $1.40, down 9.09% for the day so far.

Let’s take a look at what the company had to say.

What’s driving the AMP share price lower?

The AMP share price is once again on the slide after the company advised in its investor report that coronavirus significantly impacted its annual outcomes across all business units.

During FY20, the company held $255 billion of total assets under management (AUM), 6% lower than during FY19. AUM-based revenue fell approximately 10.5% to roughly $1.5 billion. 

AMP reported an underlying net profit after tax (NPAT) of $295 million, a 33% decline compared to the $439 million delivered in FY19.

The AMP share price is coming under pressure on news the company did not declare a final FY20 dividend. This decision was based on the board presently assessing AMP’s portfolio, current market conditions and overall business performance.

According to AMP, the board intends to pay dividends, execute a share buyback program and carry out additional capital initiatives in 2021. 

AMP CEO comments on poor performance

Commenting on the company’s annual performance and overall business environment, CEO Franceso De Farria said:

Volatility in markets and the economic downturn impacted the investments and financial security of many Australians and New Zealanders. True to our long-term purpose, AMP stepped up to support our clients navigate the uncertainty, providing early access to their super, pauses on their mortgage repayments, relief on their rent, and advice and guidance when needed.

AMP stated that it continues to progress its three-year transformation strategy, amid challenging market conditions.

Mr De Farria continued that:

Underpinning our strategy, we have also accelerated our cultural transformation and are determined to drive a culture of inclusion, accountability and high performance. 

The cultural transformation initiative follows AMP’s August 2020 scandal in which two previous CEOs, Bob Pahari and Alex Wade, stepped down following matters involving sexual harassment. 

AMP share price and company snapshot

AMP is a financial services company that operates in Australia and New Zealand. It provides a range of services including superannuation, life insurance, investments and advice. It also offers retail banking services, has partnerships in China and Japan and investments around the world.

The AMP share price has fallen by more than 70% over the past five years and by nearly 10% since the start of this year alone.

Based on the current AMP share price, the company has a market capitalisation of around $5.29 billion with 3.44 billion shares outstanding.

More reading

• Why AMP, Ecofibre, Magellan, & Vita shares are sinking today
• 4 most trusted ASX companies (and the 4 least trusted)
• NRW (ASX:NWH) share price jumps as it moves closer to Primero acquisition
• Jailing of NAB exec a scary déjà vu for NAB (ASX:NAB) share price
• IOOF exec says she was sacked for mental illness

Motley Fool contributor Gretchen Kennedy 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 Bruce Jackson.

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The ASX Ltd (ASX: ASX) share price is slipping in early morning trade.

At the time of writing, the ASX share price is down 2%. This comes after the Australian listings venue released its half-year results for the 2021 financial year ending 31 December.

What results did ASX report for 1H21?

In this morning’s release, ASX reported a net profit after taxes (NPAT) of $241.8 million for 1H21, down 3.4% from 1H20. That fall came despite a 1.3% increase in earnings before income and taxes (EBIT). The company pointed to lower interest rates cutting into its interest earnings for the fall in NPAT.

Operating revenue of $470.5 million was up 3.4% over the previous corresponding period. ASX said that the decline in its derivatives and OTC Markets, with lower short-term interest rate futures volumes, was offset by growth in listings and equity activities.

The 85 new listings over the half-year were up more than 50% from the previous half. The almost $52 billion in total capital raised represented a 24% increase. Most of that growth came from initial public offering (IPO) capital.

The interim dividend will fall the same amount as NPAT, a decrease of 3.4% to 112.4 cents.

Comments from the CEO

Regarding the results, Dominic Stevens, ASX Managing Director and CEO, said:

The strength of ASX’s diversified business is evident in the overall result for the first half of the 2021 financial year…Revenue growth in our cash equities-related activities – particularly Listings and Issuer Services, and Trading Services – offset the economic impact of COVID-19 and the RBA’s yield curve control program on our Derivatives and OTC Markets business…

The Derivatives and OTC business continued to be impacted by the COVID-driven yield curve control measures at the short-end of Australia’s interest rate curve. While overall futures volumes were down more than 15%, 10-year bond futures volumes were up almost 17%.

Looking at the year ahead, Stevens predicted that the impact of the pandemic was likely to linger, but said ASX is up to the challenge:

As expected, the challenges arising from COVID were felt during the half and are likely to continue for at least the short term. ASX remains well positioned to serve Australia’s financial markets and our shareholders, given our mix of businesses, product and operational expertise, and commitment to investing in the technology that supports our industry’s integrity and growth.

ASX share price snapshot

The ASX share price rebounded strongly from last autumn’s viral induced falls. However, the past 6 months have largely seen the ASX share price trend lower. Shares are down 17% since 11 August. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 12% in that same time.

Year-to-date the ASX share price is down 3.5%.

More reading

• 5 things to watch on the ASX 200 on Thursday
• How to turn $20,000 into $1 million in 10 years with ASX shares
• Douugh (ASX:DOU) share price still in limbo. Here’s why
• Which ASX 200 shares have been slapped with price downgrades this week?

Motley Fool contributor Bernd Struben 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 Bruce Jackson.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has fought back from a poor start to trade slightly higher. The benchmark index is currently up 2 points to 6,858.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking lower:

AMP Ltd (ASX: AMP)

The AMP share price is down 10% to $1.39 following the release of its full year results. The financial services company reported an underlying net profit after tax of $295 million for the 12 months ended 31 December. This is down 33% on the prior corresponding period. Management advised that it reflects the impacts of COVID-19 on its clients, its business, and the broader economy and financial markets.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price is down 13% to $1.57. Investors have been selling the hemp company’s shares following the release of a very disappointing half year result. Ecofibre reported a 49% decline in revenue to $14.7 million and a sizeable $5.5 million loss after tax. The latter compares to a $7.1 million profit in the prior corresponding period.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has fallen 4% to $49.09. This follows the release of the fund manager’s half year results this morning. For the six months ended 31 December, Magellan reported a 9% increase in its average funds under management (FUM) to $100.9 billion. However, due to a sharp decline in performance fees, the company posted a 2% decline adjusted net profit after tax to $213.1 million.

Vita Group Limited (ASX: VTG)

The Vita share price has crashed 27% lower to 82.5 cents. This follows news that Telstra Corporation Ltd (ASX: TLS) intends to transition to full ownership for all of its branded retail stores across Australia. At present, Vita operates 104 Telstra retail stores on behalf of the telco giant. This makes up the vast majority of its revenue. According to Vita, the agreement will end in June 2025.

More reading

• Why the Magellan (ASX:MFG) share price is tumbling 5% lower today
• Why the Vita (ASX:VTG) share price is crashing 31% lower today
• 4 steps to pick winning ASX shares
• Telstra (ASX:TLS) share price on watch after maintaining half year dividend
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Newcrest Mining Ltd (ASX: NCM) share price leapt 5.38% this morning and is trading at $25.56 at the time of writing.

The gains come following the release of the company’s results for the first half of the 2021 financial year.

What did Newcrest Mining report?

In this morning’s release to the ASX, Newcrest Mining revealed that historically high gold prices coupled with its own strong operating performance had delivered record free cash flow over the financial half-year of $439 million.

The company’s statutory profit was $553 million, an increase of 134% from the previous corresponding period. Underlying profit, also $553 million, was 98% higher.

Revenue of $2.17 billion was up 21%, while earnings per share (EPS) increased 121% over the first-half FY20 results.

Newcrest reported an all-in-sustaining cost margin of $842 per ounce, an increase of 48%. Its realised gold price of $1,826 per ounce was up 26% from the $1,446 per ounce realised in the 6 months ending 31 December 2019.

On the environmental front, Newcrest reported it’s on track to reduce its emissions intensity by 30% by 2030.

The company also announced a new dividend policy, targeting dividends of 30–60% of annual free cash flow. The previous policy targeted 10–30% shareholder returns. Newcrest will pay an interim dividend of 15 US cents per share (cps), fully franked. That’s 100% more than the previous year.

Addressing the results, Newcrest CEO Sandeep Biswas said:

In 2018, we set ourselves some ambitious targets to Forge a Stronger Newcrest. Our progress and achievements over the past three years has put us in a very strong position to not just weather the global uncertainty associated with COVID-19, but to keep our eyes firmly on our future growth agenda.

We have a fabulous position in our industry, with a long reserve and resource life, a unique set of technical skills, a very strong balance sheet, numerous organic growth options in progress and an exciting exploration pipeline.

Looking ahead, Newcrest maintained its guidance for copper and gold production for the 2021 financial year. It expects gold production will be in the higher end of its guidance range, noting that this remains subject to market and operating conditions. The company also flagged COVID-19 as a potential wildcard in its forecast operations.

Newcrest Mining share price snapshot

Newcrest’s share price has been trending steadily lower over the past 6 months, down 25% since 11 August. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 12% over that same time.

With this morning’s intraday moves factored in, year-to-date the Newcrest share price is down 2%.

More reading

• 4 steps to pick winning ASX shares
• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 shares to buy for growth
• ASX 200 rises 0.5%, CBA reports, Crown deemed unsuitable for Sydney
• Nasdaq at record high! Here’s what it means for the ASX 200

Motley Fool contributor Bernd Struben 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 Bruce Jackson.

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The Magellan Financial Group Ltd (ASX: MFG) share price has come under pressure on Thursday.

In morning trade the fund manager’s shares are down 5.5% to $48.20.

Why is the Magellan share price under pressure?

Investors have been selling Magellan’s shares this morning following the release of its half year results.

For the six months ended 31 December, Magellan reported a 9% increase in its average funds under management (FUM) to $100.9 billion.

However, due to a sharp decline in performance fees, this couldn’t stop the company from reporting a 4% decline in revenue to $320.17 million. During the half, management fees increased 8% to $309.35 million but performance fees dropped 70% to $12.4 million. Service fees also fell 15% and interest and other revenue fell 190%.

On the bottom line, the company posted a 2% decline in adjusted net profit after tax down to $213.1 million.

Positively, despite the profit decline, the company’s board elected to increase its interim dividend by 5% to 97.1 cents per share.

Management commentary

Commenting on the half, Magellan’s CEO, Brett Cairns, said: “Magellan had a busy first half with the completion of a number of important initiatives including the restructure of our global equities retail funds, the launch of the Magellan Sustainable Fund and the MFG Core Series and principal investments we made in Barrenjoey Capital Partners, FinClear Holdings Limited and Guzman y Gomez (Holdings) Limited.”

“During the period, the Group saw a 9% growth in average funds under management to $100.9 billion. We are pleased with this outcome, particularly given the severe market volatility seen around the world driven by the COVID-19 pandemic and the headwind of the rising Australian dollar.”

“For the half year ended 31 December 2020, the Group reported net profit after tax of $202.3 million, which represents an increase of 3% over the previous corresponding period. We are pleased to announce the 5% increase in the interim dividend to 97.1 cents per share which reflects the increase in the underlying profitability of the funds management business before performance fees,” he concluded.

More reading

• Why Magellan, News Corp, REA Group, & Temple & Webster shares are racing higher
• 2 ASX shares to buy in February 2021
• Top brokers name 3 ASX shares to sell next week
• Got money to invest? Here are 3 ASX shares to buy
• Top fundie Hamish Douglass warns of ASX share market FOMO

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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