The Magellan Financial Group Ltd (ASX: MFG) share price is having a very disappointing finish to the week.
In morning trade, investors have been hitting the sell button and heading to the exits in their droves.
At the time of writing, the fund manager's shares are down over 10% to $7.87.
This latest decline means the Magellan share price is now down 27% over the last 12 months.
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Why is the Magellan share price crashing?
Investors have been selling the fund manager's shares after it released its latest funds under management (FUM) update.
According to the release, the update reveals that Magellan's FUM took a major hit in September.
This is particularly disappointing because its FUM had started to show signs of stabilising. But that simply wasn't the case last month.
The release shows that Magellan's total FUM fell 10% from $39 billion to $35 billion over the course of the month. This reflects a 7.5% decline in retail FUM to $16.2 billion and a 12.6% reduction in institutional FUM to $18.8 billion.
The hardest hit strategy was its global equities funds, which reported a FUM decline of almost 18%. Infrastructure equities fell 3.8% and Australian equities dropped marginally month on month.
Management advised that it experienced net outflows of $2 billion, with the rest presumably attributable to unfavourable market movements in September. It said:
In September, Magellan experienced net outflows of $2.0 billion, which included net retail outflows of $0.3 billion and net institutional outflows of $1.7 billion.
