MA Financial Group (ASX: $MAF) 1Q24 operational highlights and bond issuance update

MA Financial Group Limited (ASX: $MAF) has reported a record 1Q gross fund inflows of $514 million, marking a 43% increase from 1Q23. The company's assets under management (AUM) have risen by 20% to $9.6 billion, with net inflows of $367 million, up 74% from 1Q23. Additionally, the company has successfully completed a $55 million unsecured note offering.

Executive commentary on 1Q24 operational highlights and bond issuance

The Group's 1Q24 operational highlights reflect positive underlying business momentum, with strong asset management fund inflows, continued growth in Finsure managed loans and broker numbers, and accelerating MA Money loan volumes. However, the challenging macroeconomic environment has subdued transactional activity, impacting corporate advisory activity, transaction, and performance fees. The Group continues to invest in future growth initiatives, with the impact of this investment spend heavily weighted to the first half of FY24 as the Group builds its US-based distribution capability and continues to bring MA Money's lending platform to scale.

Summary of MA Financial Group's 1Q24 performance and outlook

MA Financial Group's 1Q24 operational highlights include record fund inflows, growth in AUM, and successful completion of a $55 million unsecured note offering. The company experienced positive momentum in its asset management, lending, and technology businesses, despite the challenging macroeconomic environment. Looking ahead, the Group aims to continue investing in future growth initiatives, particularly in building its US-based distribution capability and scaling MA Money's lending platform. The company remains focused on navigating the impact of the current economic conditions and aims to achieve a breakeven earnings run rate for MA Money during 2H24, while addressing cost of funding pressures. The corporate advisory and equities business also maintains a strong transaction pipeline, although the operating environment remains challenging, impacting execution timing.