The S&P/ASX 200 Index (ASX: XJO) isn't having a crash-hot start to the trading week so far this Monday. At present, the ASX 200 has lost a slim 0.16% and is back to just under 7,550 points. But it's a different story when it comes to the Magellan Financial Group Ltd (ASX: MFG) share price. Well, at least it was.
Magellan shares had a cracking start to the trading day. The ASX 200 investment manager closed at $9.23 a share last week but opened at $9.53 this morning before rising as high as $9.79 – a gain of more than 6%.
But alas, it wasn't to last. This cracking gain turned out to be a flash in the pan. Soon after market open, Magellan shares lost steam and dropped into the red. At the time of writing, the company has scraped back into the green, up 0.11% at $9.24 a share:
So what has caused this rather dramatic volatility this Monday?
Well, it appears we have Magellan's latest funds under management (FUM) figures to thank.
Magellan share price swings as latest FUM figures come out
This morning before market open, Magellan announced its latest FUM figures in an ASX release to the markets.
It was a bit of a mixed bag for Magellan over January 2023. Overall, total FUM rose from $45.3 billion on 30 December 2022 to $46.2 billion as of 31 January. That's a rise worth just under 2%.
However, it wasn't all roses. The company still experienced net outflows of $0.5 billion for the month. This was made up of $0.3 billion from retail investors and $0.2 billion from institutional investors.
Rising markets in January saved Magellan's overall FUM from recording a fall. Magellan's Global Equities division rose from $20.6 billion to $20.8 billion. Infrastructure Equities lifted from $16.2 billion to $16.4 billion, while Australia Equities surged from $8.5 billion to $9 billion.
Magellan has been dealing with falling FUM for months now, so investors would have been waiting for this latest report with great anticipation. Judging from the erratic reaction from the Magellan share price today, it seems to have disappointed investors.
The Magellan share price still remains up a healthy 5.5% in 2023 to date though. However, it remains down by a painful 37% over the past 12 months, and by more than 85% since early 2020.
