The S&P/ASX 200 Index (ASX: XJO) has opened higher this morning after yesterday’s carnage on the markets. At the time of writing, the ASX 200 has gained 0.15%. But unfortunately, that goodwill is not extending to the Magellan Financial Group Ltd (ASX: MFG) share price.
Magellan shares are currently down a nasty 6.17% at $18.56 each. That comes straight after yesterday’s fall of more than 4.8%, putting its five-day losses at around 14%.
So what might be dragging on Magellan shares today?
Well, it just happens that the fund manager has today released its latest funds under management (FUM) update.
As you might have anticipated, it wasn’t exactly good news. Magellan reported its total FUM now stands at $77.2 billion. That’s a reduction of 11.37% since its last update on 11 February when the company announced FUM of $87.1 billion.
Magellan shares sink as FUM outflows continue
Some $3.2 billion of those losses were due to fund outflows, with the rest presumably the results of movements in share and asset market prices. Of that $3.2 billion, $2.6 billion was the result of outflows from institutional investors, with the remaining $0.6 billion coming from retail investors.
Turning to Magellan’s remaining $77.2 billion in FUM, $47.1 billion is housed in Magellan’s Global Equities division. The company’s Infrastructure Equities division is looking after $20.5 billion and Australian Equities has $9.6 billion in FUM.
This news comes just a week after the half-year earnings report that Magellan released to investors on 18 February. This was very well received at the time, with the company reporting a 24% rise in net profits after tax (NPAT), along with a 13% increase in its interim dividend. Even after the falls of the past week, Magellan shares remain up slightly from where they were before the earnings report was released.
Even so, the Magellan share price has had a rough trot over recent months and years. The company remains down around 12% year to date, and down a nasty 59% over the past year.
At the current Magellan share price, this ASX 200 fund manager has a market capitalisation of $3.52 billion, with a dividend yield of 10.9%.
The post Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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