Magellan shares plunge nearly 8% after hitting one-year high
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The news: Shares in investment manager Magellan Financial Group tumbled on the ASX after hitting a one-year high on Thursday.
The numbers: Magellan shares were down 7.8% to $11.02 by 3pm AEDT and was the second worst performing stock across the ASX 200.
It ended the previous session 4.6% higher, boosted by a lift in funds under management (FUM) in November.
Its share price is still a fraction of its $64.36 record high in February 2020.
The context: Despite FUM growing by $1.1 billion last month, Magellan reported $200 million in net retail outflows and $200 million in net institutional outflows during the period.
Its total FUM of $39.1 billion has also reduced significantly from a $113.9 billion high in FY21, despite steady improvements in FY24.
Since 2021, the fund manager has suffered investment underperformance, seen departures of senior management figures and faced significant outflows.
