Well, it’s been an awful day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday, no way around it. At present, the ASX 200 has lost a meaty 1.65%, dragging the Index back under 7,000 points. And one of the worst casualties of this market pessimism is the Magellan Financial Group Ltd (ASX: MFG) share price.
Magellan shares haven’t done well in the face of this ASX sell-off, to put it kindly. This ASX 200 fund manager has cratered by a nasty 4.4% at the time of writing, putting the company down to $8.03 a share.
This bad news was a lot worse this morning too. Just before midday, the Magellan share price fell as low as $7.90 a share.
Not only is that a new 52-week low for Magellan, but it represents a new 10-year low for the fund manager. Yep, you’d have to go back all the way to June 2013 to find the last time Magellan was trading with a 7 at the front of its share price:
So what’s going on with Magellan today that has the company at a decade low?
Why is the Magellan share price at a 10-year low today?
Well, it doesn’t appear to be the result of anything out of the company itself. There hasn’t been much in the way of news at all out of Magellan recently. The company’s last ASX announcement was the funds under management (FUM) update we received on 6 March.
This didn’t contain much in the way of good news, with Magellan’s FUM standing at $45.4 billion as of 28 February, down from $6.2 billion at the end of January.
Magellan shares have been losing steam ever since this update was released, but its losses have accelerated sharply over the past few days. In fact, over the past week alone, the Magellan share price is down by more than 7%.
As such, it looks like investors are bailing out of Magellan thanks to the woes of the broader market. As we’ve extensively covered here at the Fool, the collapse of the US bank SVB Financial Group has spooked markets all around the world.
The ASX sell-off in the wake of the news that SVB had gone under late last week has resulted in the ASX 200 losing all of the gains that it had notched up in 2023 so far.
So it seems that investors can thank this bout of panic for the lows we are seeing in the Magellan share price this Tuesday.
