A method of producing a compound for bonded magnets, the method including: heat-curing a thermosetting resin and a curing agent having a ratio of the number of reactive groups of the curing agent to the number of reactive groups of the thermosetting resin of at least 2 but not higher than 11 to obtain an additive for bonded magnets; and kneading the additive for bonded magnets, magnetic powder, and a thermoplastic resin to obtain a compound for bonded magnets in which a filling ratio of the magnetic powder is at least 91.5% by mass.