The Magellan Financial Group Ltd (ASX: MFG) share price is currently up by 7%. It hasn't been this high since the start of March 2022.
The S&P/ASX 200 Index (ASX: XJO) is also up today, rising by around 0.7%.
Over the last 24 hours, there has been positivity in the global share market amid the news that Russia said it would "drastically reduce" its attacks on the cities of Kyiv and Chernihiv. The S&P 500 Index (SP: .INX) went up by 1.2% overnight.
What's happening with the Magellan share price?
Magellan shares have surged this week.
However, the fund manager's shares remain 54% lower than where it was six months ago. Since the start of 2022, the Magellan share price has dropped around 25%.
The company has seen an enormous amount of funds under management (FUM) leave the business.
Its latest update, given on 14 March 2022, revealed that Magellan's FUM had dropped to $69.1 billion. That was a decline from $77.2 billion, which was reported to the ASX on 25 February 2022. It has experienced net outflows of approximately $5 billion since the February update, including net institutional outflows of $4.7 billion and net retail outflows of $0.3 billion.
Magellan had also received notifications of intention to redeem $1 billion, which was reflected in the above FUM figures.
The fund manager has also seen its talisman and co-founder Hamish Douglass take a leave of absence after a period of intense pressure. He has also stepped down from the board.
Buyback
Magellan recently announced the launch of a share buyback. It will buy up to 10 million shares, representing up to 5.4% of shares on issue.
Broker thoughts on the Magellan share price
Morgans thinks Magellan is a 'hold' with a price target of $15.78, though it thinks its FUM needs to stabilise.
Ord Minnett thinks it a sell, with a price target of just $13. The broker noted Magellan's investment fund performance continues to disappoint.
