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Magellan reported A$3.2 billion ($2.1 billion) in institutional
outflows last month and said in a statement that about half of
it related to "liquidity requirements of a client impacted by
global market volatility in late September".
Magellan gave no further information about the client or the
nature of the volatility, though the timing coincided with a
wild selloff in British assets - particularly gilts and the
pound - after Britain announced a raft of unfunded tax cuts.
Many British pension schemes have large exposures to gilts and
faced margin calls on derivatives positions, forcing the sale of
liquid assets.
Months of net outflows, poor investment performance and the
departure of star fund manager Hamish Douglass has hammered
Magellan stock this year. It fell 8.4% on Thursday in a steady
broader market and the stock price has halved this year.
($1 = 1.5347 Australian dollars)
(Reporting by Tom Westbrook; Editing by Robert Birsel)
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