Magellan outflows hit $5.5bn

MAGELLAN Financial shares slumped 4.9 per cent after it revealed a net outflow of funds under management of approximately $5.5bn since January 1.

The company said it had funds under management (FUM) of $87.1bn as at February 9, which was down from $95.5bn at the end of December and $93.5bn at the end of January.

The drop in FUM comprised $5bn in net institutional outflows and net retail outflows of $500m.

The company has been reeling from the departure of its CEO Brett Cairns late last year and more recently its chairman Hamish Douglass, who is taking indefinite medical leave of absence.

Chris Mackay, the company’s co-founder who has returned to manage its global equities funds, said Magellan was “strong, it’s a simple business at our core”. “There are no orange or red flags within the portfolio,” he said.

Magellan shares closed 4.9 per cent or 94c lower at $18.11 on Friday. The stock hit an alltime high of $74.91 in February 2020.