Shares in Magellan Financial Group dropped 6% earlier this month when the company reported that its funds under management (FUM) had fallen in April by about a half a per cent, due largely to a $73m outflow of institutional funds. No matter that the MSCI World index slipped by about 1% in the month, and no matter that management followed up with a note explaining that institutional fund flows can be lumpy.
It’s the first monthly fall in FUM in over a year and the market is worried that the stratospheric growth that has seen FUM rise almost tenfold in just three years might be coming to an end.
