Magellan Financial Group Limited 

Magellan Financial Group Limited (ASX: MFG) is a fund management company and operates in three segments, namely, fund investments, funds management, and Magellan Capital Partners. It was incorporated in 2004 and provides services to HNI (High Net Worth Individuals) and retail investors.

St James’s Place Mandate Termination: As per its recent update released on 20^th December 2021, St James’s Place (SJP) terminated mandate with MFG’s wholly owned subsidiary Magellan Asset Management Limited. As stated in mandate, it was held as a separate account from Magellan’s global funds which contributed ~12% in annual revenue of ~$715 million (up by ~3% on Pcp basis) for the FY21. MFG anticipates a ~6% of future impact on its revenue for the FY22 and considers the termination impact is immaterial. For FY21, MFG posted a decrease of ~33% in its Net Profits to ~$265 million and closed its FY21 with a cash balance of ~$211.57 million at the end of 30^th June 2021.

As stated on 17^th December 2021 announcement, MFG was supposed to be on a trading halt until further announced or 21^st December 2021, which is earlier, but it resumed trading on 20^th December 2021.

MFG Daily Technical Chart, Data Source: REFINITIV 

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and is subject to the factors discussed above alongside support levels provided.

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Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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