It is a decent day on the market on Thursday, but it is a volatile day for the Magellan Financial Group Ltd (ASX: MFG) share price.
Moments after the market kicked off, investors were flocking to the financial management company, lifting more than 3%. However, Magellan shares quickly inversed and are now down 1% at $14.49 at the time of writing. As a point of comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% this morning.
While it appears Magellan was still bleeding outflows throughout July, there are some positives. Let's take a closer look.
What is boosting the Magellan share price?
It has been a challenging past year for Magellan, with the negative news cycle accelerated by the loss of its St James Place mandate back in December last year.
Today, the pain subsides as onlookers absorb a month of fund flows that could hint at a flattening.
According to the funds under management (FUM) update for July, the company's total FUM stood at $60.2 billion at the end of the month. For context, FUM finished at $61.3 billion at the end of June, meaning Magellan experienced a further 1.8% deterioration in its managed funds.
On a positive note, the rate of the reduction has slowed compared to the prior month, which was a 5.7% decrease at the end of June. This could be one aspect of the update giving the Magellan share price a boost today.
Where the money flows
Taking a closer look at how the specific segments fared in July, FUM changes were as follows:
- Global equities FUM down 0.01% to $33 billion
- Infrastructure equities FUM down 6% to $18.9 billion; and
- Australian equities FUM up 13.7% to $8.3 billion
Investors might also be shifting their gaze toward the significant uptick in Australian equity funds. While it represents the smallest portion of the company's FUM, it is a welcomed positive for the Magellan share price.
Despite today's reprieve, Magellan shares remain roughly 23% lower compared to where they were at the beginning of the year.
