Magellan, WAM suffer due to Iran conflict

Monthly updates from both Wilson Asset Management's WAM Leaders Fund and Magellan reveal the impact of market volatility due to the ongoing crisis in the Middle East.

The WAM Leaders investment portfolio decreased during the month, while Magellan saw assets under management drop from $39.9 billion to $37.5 billion.

"The broader market sell-off was driven by escalating Middle East tensions and the resulting oil shock," WAM said.

"This shifted the domestic inflation and interest rate outlook, with the Reserve Bank of Australia minutes signaling further tightening."

Magellan's drop in AUM was a result of net outflows and market movements from the Iran conflict.

Investors may be hopeful market volatility will calm down going forward after US President Donald Trump announced a two-week ceasefire has been agreed. In return Iran said safe passage through the Strait of Hormuz "will be possible".

Trump said the Iranian government sent through a 10-point proposal which the US has deemed "workable".

"We received a 10-point proposal from Iran, and we believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalised and consummated," Trump said in a Truth Social post.

"On behalf of the United States of America, as President, and also representing the countries of the Middle East, it is an honour to have this long-term problem close to resolution."

The news of the two-week ceasefire comes just 12 hours after Trump declared "a whole civilisation will die tonight, never to be brought back again", as his rhetoric on Iran escalated after issuing yet another ultimatum.