The Magellan Financial Group Ltd (ASX: MFG) share price has returned from its trading halt with a thud.
In morning trade, the fund manager's shares are down a disappointing 23% to a multi-year low of $22.46.
This means the Magellan share price is now down a whopping 58% since the start of 2021.
Why is the Magellan share price sinking again?
Investors have been selling down the Magellan share price this morning after it confirmed the loss of a major contract.
According to the release, Magellan has been notified by UK-based multinational wealth management business St James's Place that it has terminated its mandate with the fund manager.
The release notes that St James's Place's mandate was a separate account and not an investment in any of Magellan's retail global funds.
However, it represents approximately 12% of the company's current annual revenues. As a result, the termination of the mandate at this point in the financial year is anticipated to have approximately a 6% impact on the revenues for FY 2022. Though, the timing also means the impact on the company's half year results will be immaterial. No details have been provided in respect to the impact on its earnings in FY 2022.
Magellan's announcement, which was lacking in detail, concluded by thanking St James's Place for its partnership and support over many years.
A difficult period
Today's news caps off a very difficult period for the Magellan share price.
Earlier this month the company announced the sudden and surprise exit of its Chief Executive Officer, Brett Cairns.
Once again, the announcement lacked details, advising that Mr Cairns was leaving for personal reasons. This sparked speculation of a major fall out in the boardroom.
And with Magellan recording significant fund outflows this year and its flagship fund underperforming its benchmarks materially, the company is arguably facing the most difficult period in its existence.
