The Magellan Financial Group Ltd (ASX: MFG) share price closed more than 3% higher on Wednesday, finishing at $16.44.
With its shares gliding downwards the past 12 months, the embattled fund manager turned to its investors for support as part of a wider plan to stop it haemorrhaging capital.
As seen below, Magellan shares have now dipped substantially from the benchmark index, the result of a significant wave of selling pressure.
'We need your help!'
Magellan is set to offer its clients $30 Amazon gift vouchers in exchange for feedback on how to improve its online services, The Age reports today.
According to reports, Magellan sent an email to clients titled, "We Need Your Help!", asking stakeholders to complete a short survey on how to improve the company's website.
"We regularly ask our clients for feedback as we value your opinions. Our website rebuild is no different… Be one of the first 200 people to complete the survey and receive a $30 Amazon voucher," it said, as cited by The Age.
The push for client engagement comes after a long-tailed string of events that's seen the fund manager's share price collapse more than 66% in the past year and almost 23% this year to date.
After the shock exit of former CEO Brett Cairns, Magellan's founder and chief investment officer Hamish Douglass was quick to follow.
A short while later, it was reported Douglass will step down indefinitely, with the company confirming he will not return under a new leadership team.
In the midst of the internal reshuffle, the fund's largest shareholder, UK giant St James Place, withdrew its investment valued at $23 billion.
Other institutional and retail outflows soon followed and have kept up at pace. Analysts at JP Morgan note this as a key risk for the company moving forward.
In a recent note, the broker said:
The pace of outflows, particularly in Institutional, appears to have slowed with Retail net outflows appearing relatively steady on a pro-rata basis.
[H]owever, we still remain cautious noting this may not be indicative of an improving trend given the very short measurement window since the previous update.
Total outflows for the March quarter stood at $17.9 billion, JP Morgan said. This was split between $16 billion of institutional capital pulled from the fund and an additional $1.9 billion in retail investor money.
"Recent leadership changes and Mr Douglass' leave of absence have resulted in greater uncertainty. We remain underweight on relative valuation," JP Morgan concluded.
