On Monday, Magellan Financial Group saw its market valuation plummet after UK’s St James’s Place terminated its mandate with the fund management giant.
In an ASX filing, Magellan said its fully owned subsidiary, Magellan Asset Management Limited was notified on 17 December 2021 that St James’s Place had terminated its mandate with Magellan.
SJP’s mandate represented approximately 12 per cent of the group’s current annual revenues and was anticipated to have approximately a 6 per cent impact on the revenues for the year ended 30 June 2022.
“The impact will be immaterial on the group’s interim results to 31 December 2021,” Magellan said.
Its shares were placed into a trading halt on Friday, prior to the ASX announcement.
However, its share price was down 28 per cent within minutes of trading opening on Monday.
Earlier this month, Magellan was rocked by the abrupt resignation of its chief executive Brett Cairns for personal reasons, an event that topped off an earlier triggered downward spiral of its share price.
Magellan is yet to provide information about why SJP terminated the eight-year long contract.
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.
