Research house asks if the end is nigh for Magellan

Australian-listed fund manager has been popular in New Zealand with advisers for exposure to global shares, but support maybe waning according to some in the industry.

Research IP has written a report, Is this the beginning of the end for Magellan? It records that in December alone Magellan lost close to A$23 billion in funds under management.

Its largest mandate, St James' Palace terminated its relationship with the manager, taking with it A$23 billion. A further A$1.1 billion was withdrawn by retail investors and A$460 million in redemptions from institutional clients.

"Yes these are all big numbers," Research IP says. "And it is likely there is more in the pipeline which will be a catalyst for more."