The Magellan Financial Group Ltd (ASX: MFG) share price is on course to end the week in the red.
In morning trade, the struggling fund manager's shares are down 3% to a multi-year low of $9.52.
This latest decline means that the Magellan share price is now down 50% in 2022.
Why is the Magellan share price falling?
Investors have been hitting the sell button on Friday after the fund manager released its latest funds under management (FUM) update.
According to the release, Magellan continued the trend of bleeding funds during the month of October.
After reporting net outflows of $3.6 billion in September, Magellan followed this up with net outflows of $2.4 billion in October. This comprised net retail outflows of $0.4 billion and net institutional outflows of $2 billion.
However, with both the Australian dollar continuing to soften and global markets having a very strong month in October, the company's FUM actually managed to increase a fraction during the month.
The release reveals that at the end of the period, Magellan's FUM stood at $51.0 billion. This is up from $50.9 billion at the end of September.
Magellan's $51.0 billion of FUM comprises retail FUM of $20.5 billion (up from $19.8 billion) and institutional FUM of $30.5 billion (down from $31.1 billion). It is also based on an AUD/USD exchange rate of 0.63945. The latter is down from 0.64295 a month earlier.
As a comparison, a year ago, Magellan's FUM was $114.8 billion at an AUD/USD exchange rate of 0.7511. That's a 55% decline in the company's FUM before taking currency benefits into account. Oh, how the mighty have fallen!
