OPINION: The biggest asset of a funds management business is confidence. Right now, investor confidence in Magellan appears to be damaged.
, Chanticleer heard from a few investors who wondered if the fund manager’s stock could be a bit of a bargain.
The wisdom of this insight was underscored on Monday morning, as Magellan shares plunged 28 per cent to a five-year low of $21.15 onThe key asset of a funds management business is a person or a group of people who are so good at picking the right stocks that investors have the confidence to pay them to invest their money.
SJP’s decision to terminate its mandate is another chapter in the same story of fading confidence. The end of the British fund’s eight-year relationship with Magellan will wipe 12 per cent of the group’s annual revenue, although the timing of the announcement means the full impact won’t be felt until the 2023 financial year.
Cutting fees would hit earnings, of course, and may arguably have a negative impact on confidence, given it essentially sends a message that the fund manager’s services aren’t worth what they once were.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX 200 LIVE: ASX to fall; Magellan tumbles 23pc after losing St James’s Place mandateAustralian shares are trading lower; iron ore edges back towards $US120 a tonne; Viva Energy expects FY21 earnings to double FY20; Dominic Barton selected as Rio Tinto chair. Follow the latest here.
Read more »
‘There’s jobs but no money’: Turkey’s economic crisis begins to biteAs the value of the lira plummets and inflation soars, Turkish citizens are struggling to adapt and survive
Read more »
Hunt says Australia won't be plunged back into lockdownsAustralia's Health Minister says Australia will not follow the Netherlands by reintroducing state-wide lockdowns to combat the Omicron variant of COVID-19.
Read more »
'Terrifying moment': Alone in the outback, Sophie's epic camel trek suddenly took a heart-stopping turnAfter travelling a gruelling 5,000 kilometres across the continent with five camels, Sophie Matterson reflects on the highs and lows of her epic two-year journey.
Read more »
Why religious lobby groups are fighting to keep schools’ power to discriminateThey say religious schools don’t expel LGBTQI students because of their sexuality – so why do they want to keep that power? | michaelkoziol
Read more »
Queen’s new rule for Will and KateThe Queen has urged Prince William to stop flying in helicopters with wife Kate and their children amid safety fears.
Read more »