Magellan shares plunge after $4b drop in funds under management
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More news: Shares in Magellan Financial Group fell nearly 8% to $8.14 in early trading on the ASX after the money manager reported a decline of $4 billion in funds under management during September — the biggest monthly drop since December 2022. Magellan shares are now down nearly 23% so far this year and are trading at a fraction of their $53 value in 2021.
Magellan funds under management down $4b in September
The news: Troubled money manager Magellan Financial has recorded a steep drop in funds under management in September, with its flagship Global Equities Fund accounting for most of the decline.
The numbers: Magellan said it had $35 billion in FUM at September-end, down from the $39 billion recorded in August. It experienced net outflows of $2 billion in the month, including net retail outflows of $0.3 billion and net institutional outflows of $1.7 billion.
The context: The fund manager has endured a challenging period over the last three years during which it has suffered investment underperformance, seen departures of senior management figures and faced significant outflows. Magellan’s current FUM is a fraction of the $113.9 billion corpus it held at the end of FY2021.
The source: ASX announcement
