In an ASX listing on Friday (11 February), Magellan confirmed its funds under management (FUM) had sunk 6.8 per cent to $87.1 billion as at 9 February.
Just days earlier, on 31 January, the fund manager boasted FUM of $93.5 billion, down from $95.5 billion a month earlier.
Wounded Magellan explained the change in FUM comprised market movements, cash distributions paid in January, new outflows and client redemptions.
Magellan explained it had experienced net outflows of approximately $5.5 billion since 1 January 2022, which comprised net institutional outflows of $5 billion and net retail outflows of $0.5 billion.
Last Monday, the fund manager said Hamish Douglass would take a leave of absence from his roles as chairman and chief investment officer after a period of intense pressure and focus on both his professional and personal life.
Following the announcement, ratings agencies have begun reviewing Magellan’s funds, placing many on watch, citing the unexpected announcement from Douglass as their chief concern.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
