The Magellan Financial Group Ltd (ASX: MFG) share price is on the slide on Friday morning.
At the time of writing, the fund manager's shares are down 1.5% to $20.12.
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Why is the Magellan share price falling?
Investors have been selling down the Magellan share price after it released its first funds under management (FUM) update since the loss of the St. James's Place mandate.
According to the release, Magellan's total FUM was $95,491 million at the end of December. This was down 18% (or $21,000 million) from $116,413 million at the end of November.
Magellan's total FUM comprises Retail FUM of $30,837 million and Institutional FUM of $64,654 million. This compares to $30,229 million and $86,184 million, respectively, from 30 November.
What about the quarter?
Magellan had a tough quarter even if you exclude the $23 billion St. James's Place mandate loss.
According to the release, excluding the mandate termination, Magellan experienced net outflows of $1,552 million during the second quarter of FY 2022. This included net retail outflows of $1,093 million and net institutional outflows of $459 million.
These net institutional outflows comprise Global Equities ($256 million outflow), Infrastructure Equities ($215 million outflow), and Australian Equities ($12 million inflow).
Management and performance fees
For the six months ended 31 December, base management fees were approximately 62 basis points (per annum) of the average of month-end funds under management over the period. Funds under management averaged $112.7 billion for the six months.
Whereas Magellan is entitled to performance fees of only $11 million for the six months.
Following today's decline, the Magellan share price is now down by a very disappointing 60% since this time last year. This makes it one of the worst three performers on the ASX 200 over the period.
