The Magellan Financial Group Ltd (ASX: MFG) share price is well in the red this afternoon, down 5.4% at the time of writing.
This might not be surprising with US equities suffering their worst day in two years in trading overnight, our time.
Shares of the global investment company currently trade for $12.515 each, well below yesterday's closing price of $13.23 a share.
Meantime, the S&P/ASX 200 Financials Index (ASX: XFJ) is also 2.75% lower so far today with the S&P/ASX 200 Index (ASX: XJO) shedding 2.45% at the time of writing.
Other financial services are also taking a hit, including BSP Financial Group Ltd (ASX: BFL), down 1.92%, and Insignia Financial Ltd (ASX: IFL), down 2.7%.
There's no news from Magellan today to make sense of its share price sell-off. But we can recap some recent events precluding the broader market movements in the US.
Image source: Getty Images
What's going on with the Magellan share price?
In September, my Fool colleague Tristan noted the Magellan Global Fund (ASX: MGF) underperformed global benchmarks while the company's Airlie Australian Share Fund outperformed the S&P/ASX 200 Accumulation Index (ASX: XJOA).
Just last week, Magellan paid out an impressive final dividend for 2HFY22 of 68.9 cents per share, franked to 80%.
In August, Magellan posted its full-year results for FY22 — and, as my Fool colleague Tristan noted, there weren't many positives.
Adjusted net profit after tax (NPAT) fell 3% to $399.7 million, while profit before tax and performance fees of the funds management business fell 11% to $470.6 million.
While average funds under management (FUM) dropped 9% to $94.3 billion, the FY22 FUM finished at $61.3 billion.
Significantly, Magellan warned that material outflows of FUM meaningfully impacted its profitability in the second half "and will affect FY23".
Magellan share price snapshot
The company's share price is down 34% in 2022 so far and 64% over the past year. That compares to the ASX 200 Index's 10% loss year to date and 8% decline in the past 12 months.
The company's current market capitalisation is $2.3 billion.
