The Magellan Financial Group Ltd (ASX: MFG) share price is taking a hit this morning but is fighting back from an early plunge.
At the time of writing, shares in the Aussie fund manager are 0.88% in the red at $12.33 apiece after dropping as low as $11.69 in early trading. That's a 6% decrease.
The decline follows the release of the company's funds under management (FUM) update.
Today's early drop also brings the loss for Magellan shareholders to 72% over the past 12 months.
What did Magellan announce?
The fund manager released its monthly FUM update that shows investment flows from both retail and institutional investors.
For the period of 29 July to 31 August, in total, the company saw net outflows of $1.3 billion, with flows pouring out across all divisions and segments.
Of this amount, $600 million of outflows stemmed from retail investors, whereas the remaining net outflows of $700 million were instigated by institutional investors.
As a result, total FUM collectively decreased from $60.2 billion to $57.6 billion following last month's activity.
Investment flows have been a contentious issue for Magellan since it was rocked by controversy in 2021, with CEO Brett Cairns and founder Hamish Douglass both parting ways with the company in mysterious circumstances.
While there's speculation on the underlying causes, Magellan's board and executive structure also saw a reshuffling, with new faces now at the helm.
The FUM result is also sure to provide no positive commentary for brokers covering the Magellan share price. Currently, six out of nine brokers rate it a sell, with the remaining three a hold, according to Refinitiv Eikon data.
The consensus price target from this list is $11.64, suggesting there's further downside to come if the group is correct.
Despite this, shareholders retained a glimmer of hope today, with the company paying out an 80% franked dividend of 68.9 cents per share.
This brings the full year's dividend to $1.79 per share. Meanwhile, Magellan's share price is down more than 42% in 2022 so far, falling 18% in just the past month of trade.
