Magellan Financial Group (ASX:MFG) has reported a sharp $2.4 billion decline in assets under management for the March quarter.
The drop leaves the fund manager's total AUM at $37.5 billion, down from the $39.9 billion recorded at the end of December 2025.
The contraction highlights the ongoing volatility facing the firm as it navigates a combination of net outflows, adverse market movements, and the scheduled payment of distributions, management fees, and performance fees.
The decline was most pronounced within the retail sector, where AUM plummeted by $1.7 billion to finish the quarter at $14.1 billion.
Magellan’s institutional segment also saw a retreat, though more contained, falling by $700 million to settle at $23.4 billion.
The latest disclosure comes at a critical juncture for the investment house, providing a sobering backdrop to a pivotal week for the company’s future corporate strategy.
The spotlight now shifts to this Friday’s extraordinary general meeting, where shareholders are set to cast their votes on a high-stakes proposal to merge with Barrenjoey Capital Partners.
The merger is widely viewed by analysts as a strategic attempt to stabilise the business and diversify its revenue streams following several years of fluctuating performance.
At the time of reporting, Magellan Financial’s share price was $9.97.