Australia's Magellan plunges as fund manager sees decline in assets managed for 8th month

Magellan Financial

06/10/2023 04:31

Oct 6 (Reuters) - Shares of Australian fund manager
Magellan Financial Group  MFG.AX  fell over 17% on Friday to hit
a more than decade low, as its assets under management declined
for an eighth consecutive month.
    The declines in funds managed, mainly in global equities
strategy, come at a time when global equity markets are going
through a period of volatility as central banks maintain their
hawkish stance.
    U.S. economic data has been mixed lately, though markets
have been especially wary that signs of resilience could justify
the Federal Reserve holding interest rates elevated for longer
or even hike them further. 
    Magellan's total funds under management (FUM) have declined
to A$35.0 billion ($22.31 billion) as at September 29, an A$4.0
billion decline since the end of August, with global equities
seeing the biggest exodus, declining to A$15.3 billion from
A$18.6 billion.
    The fund manager's shares hit A$7.270, their lowest since
May 2013, and marked their worst intraday daily loss since
December 2021.
    The Sydney-based firm was the biggest loser in the ASX 200
benchmark index  .AXJO , with more than 4.5 million shares
changing hands, over four times the 30-day average volume of 1
million.
    Magellan's net outflows for September were A$2.0 billion,
with institutional outflows making up the most of it with A$1.7
billion outflows.
    Its total FUM has declined for eight out of nine months this
year, and is down 22.7% from the end of last year. 

($1 = 1.5686 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Krishna Chandra Eluri)
 ((Adwitiya.Srivastava@thomsonreuters.com;))