Down 1%: Here's why the Magellan share price is having an awful Tuesday

Magellan shares are sinking today after we got a look at January's numbers.

It's looking like another rough day is in store for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares this Tuesday. At the time of writing, the ASX 200 has sunk by another 0.95%, leaving the index at just over 7,550 points. But let's talk about the Magellan Financial Group Ltd (ASX: MFG) share price.

Magellan shares are having an even worse time of it today so far. The fund manager closed up shop at $8.94 a share yesterday afternoon. But this morning, the Magellan share price opened at just $8.90 and is going for $8.85 a share at the time of writing, down 1.01%.

So what's going on at Magellan today that might explain this miserly performance so far this Tuesday?

Well, it's probably got something to do with the funds under management update the company released this morning just before market open.

Man on a laptop thinking.

Image source: Getty Images

FUM rises, but shares sink anyway

Magellan has revealed that its funds under management (FUM) had grown from $35.8 billion as of 31 December to $36.3 billion on 31 January, an increase of 1.4%. Retail FUM rose from $16.7 billion up to $17 billion, while institutional funds ticked up from $191 billion to $19.3 billion.

In terms of the company's divisions, 'global equities' rose from $14.9 billion to $15.5 billion, while 'Australian equities' grew FUM from $5.1 billion to $5.2 billion.

Magellan's 'infrastructure equities' shrank from $15.8 billion in FUM to $15.6 billion.

However, most of these gains can probably be attributed to rising stock prices. The company reported that over January, it experienced net FUM outflows of $400 million, split evenly between retail and institutional investors.

This data from January continues the trend of slow FUM upticks for Magellan that we've seen in recent months. Earlier last month, we covered Magellan's total FUM increase of 1.7% to $35.8 billion. However, the company also experienced a net outflow in January of $200 million.

In January 2023, Magellan commanded a total of $46.2 billion in FUM, so the company has seen a 12-month FUM decline of 21.4%.

Magellan share price snapshot

The past 12 months have not been kind to the Magellan share price. The ASX 200 fund manager has lost 4.01% over the past year, as well as 82% of its value since July 2021.

Saying that, Magellan shares are also up more than 46% since its October 52-week (and 10-year) low of $6.06 a share.

At the current Magellan share price, this ASX 200 fund manager has a market capitalisation of $1.61 billion, with a trailing dividend yield of 9.75%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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