It has been a case of another day, another decline for the Magellan Financial Group Ltd (ASX: MFG) share price.
In morning trade on Monday, the fund manager's shares are down 5.5% to a new multi-year low of $13.43.
This means the Magellan share price is now down 70% over the last 12 months.
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Why is the Magellan share price falling again?
Hot on the heels of revealing a very poor investment performance for its flagship global fund on Friday, which you can read about here, this morning Magellan provided an update on its dwindling funds under management.
According to the release, at the close of US trading on Friday 11 March, Magellan had funds under management of approximately $69.1 billion. This comprises $39.2 billion in global equities, $20.4 billion in infrastructure equities, and $9.5 billion in Australian equities.
This means that Magellan's funds under management have fallen by $8.1 billion or 10.5% from $77.2 billion since its most recent update on 25 February.
The damage has been felt hardest in global equities, which is down 16.8% from $47.1 billion since its last update. Both infrastructure and Australian equities were down by approximately $100 million over the same period.
Management advised that the weakness in its funds under management reflects market movements (including foreign exchange and recent market volatility), net outflows, and notifications of intention to redeem.
In respect to the latter, Magellan revealed that it has experienced net outflows of approximately $5 billion since its most recent update. This comprised net institutional outflows of $4.7 billion and net retail outflows of $0.3 billion. It has also received notifications of intention to redeem of $1 billion, which has been reflected in the above figures.
Unfortunately for shareholders, last week the team at UBS warned that it is seeing an emerging risk to infrastructure funds under management. This follows the recent underperformance from this side of the business. So this may not be the end of its fund outflows.
