Insights

Why is the Magellan (ASX:MFG) share price slipping today?

After hitting a new 52-week low today, what’s going wrong for this ASX fund manager.
The post Why is the Magellan (ASX:MFG) share price slipping today? appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) is having a bumpy start to the trading week this morning. The ASX 200 is currently down by 0.21%% at 7,244 points after a brief dive and rebound just after market open today. But one ASX 200 share is still very much in the red so far. That would be the Magellan Financial Group Ltd (ASX: MFG) share price.

Magellan shares are, at the time of writing, down a nasty 3.61% at $31.20 a share. Not only that, this ASX fund manager dipped as low as $30.15 a share earlier in the trading day. That’s a new 52-week low for Magellan shares. It’s also the lowest pricing this company has seen since early 2019.

So what’s gone so wrong for Magellan today?

It’s likely to do with the funds under management (FUM) update the company released to the markets before open this morning.

Magellan, as a fund manager, releases its FUM every month, including its specific inflows and outflows. Today’s release covered the month of November.

Magellan share price slumps on FUM numbers

So Magellan told investors that its total FUM stood at $116.413 billion (as of 30 November). That’s up 1.41% from the $114.8 billion the company recorded on 31 October.

Retail FUM decreased slightly over the month, falling from $30.31 billion on 31 October to $20.23 billion on 30 November. However, institutional FUM rose from $84.5 billion to $86.18 billion over the same period.

All three of Magellan’s fund divisions saw rises. Global Equities rose from $85.14 billion to $86.27 billion. Infrastructure Equities was up from $19.97 billion to $20.45 billion, while Australian Equities rose from $9.69 billion to $9.7 billion.

Saying that, the Australian dollar had quite a fall between 31 October and 30 November. Magellan tells us that the Aussie was buying 75.11 US cents as of its October numbers, but had fallen to 70.9 US cents by November. As you can tell from the above figures, the vast majority of Magellan’s FUM is invested in international assets, most of which would be priced in US dollars.

As such, it’s very possible that on a constant currency basis, Magellan’s FUM would have actually fallen over the month just gone, or at least not look quite as rosy as it does with the drop included.

This could be one of the reasons why investors seem to have reacted so negatively to this announcement this morning.

Whatever the real reason for investors’ harsh reaction today, no doubt many of Magellan’s investors will be disappointed.

At the current Magellan share price, this company has a market capitalisation of $5.79 billion, a price-to-earnings (P/E) ratio of 21.6 and a trailing dividend yield of 6.77%

The post Why is the Magellan (ASX:MFG) share price slipping today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Magellan right now?

Before you consider Magellan, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magellan wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Magellan (ASX:MFG) share price dropped in November 2021. Here’s what happened

2 ASX 200 shares with strong dividend income prospects

2 ASX shares I regret and 2 that I don’t: expert

The Magellan (ASX:MFG) share price is now down 40% since July

2 ASX 200 shares that could be top buys for dividends

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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!