It's been a strong start to the trading week for the S&P/ASX 200 Index (ASX: XJO) so far today. At the time of writing, the ASX 200 has gained 0.29%, which lifts the index back over 7,000 points. But let's talk about the Magellan Financial Group Ltd (ASX: MFG) share price.
Magellan shares are currently flat, leaving the ASX 200 fund manager at $6.95 a share at present. But this morning, the company had a far less rosy time of it, starting the session in the red at $6.91 before dropping as low as $6.86.
These erratic share price moves follow the release of Magellan's latest funds under management (FUM) update.
As anyone who follows this company closely would be aware, Magellan's FUM has been a thorn in the company's (and investors') side for more than a year now.
A series of scandals, exits and reshuffles at the company's top echelons, and investor concerns over fund performances have done enormous damage to the Magellan brand. Since around early 2022, Magellan has been bleeding FUM almost every single month.
Once upon a time, this company had well over $100 billion in FUM. But, as we covered this time last month, by the end of September, funds under management had fallen to approximately $35 billion. Magellan lost 10% of its FUM over September alone, with FUM dropping from $39 billion to $35 billion.
But today, the company has just released its latest FUM report covering October.
So what did Magellan have to report for the month just gone?
FUM continues to fall
Well, to get this out of the way, the loss of FUM has not been stemmed. Magellan once again saw a decline in its total funds management over October, falling $700 million from $35 billion at the end of September to $34.3 billion at the end of October.
The good news is that this drop only came to 2%, which is a vast improvement over the 10% drop we saw this time last month.
Breaking the figures down, Magellan saw $300 million in retail investor outflows, as well as $500 million in institutional outflows.
So judging by the apathetic (so far), albeit shaky, share price performance from Magellan shares this Monday, it seems investors are disappointed, but also perhaps somewhat relieved that the FUM figures for October weren't worse.
Let's see what happens in November.
Magellan share price snapshot
As heavily implied, the Magellan share price has not had a good time of it lately. This company remains down by 20.4% year to date, as well as down almost 28% over the past 12 months. Investors have lost more than 90% since Magellan's last all-time high of over $74 a share back in February 2020.
At the current Magellan share price, this ASX 200 fund manager has a market capitalisation of $1.21 billion, with a trailing dividend yield of 12.49%.
