Magellan Financial (ASX:MFG) loses major UK contract

Magellan Financial (ASX:MFG) has lost its $18.6 billion mandate from British wealth manager St James’s Place (SJP).

The mandate, which was a separate account and not an investment in any of Magellan’s retail global funds, represents about 12 per cent of the group’s current annual revenue and is likely to have a six per cent hit on the revenues for the year ended June 30.

SJP terminated its mandate with Magellan’s subsidiary Magellan Asset Management. The company said the impact will be immaterial to its interim results to December 31 however.

“Magellan would like to thank SJP for its partnership and support over many years,” the company said

Shares in Magellan Financial (ASX:MFG) are trading 27.5 per cent lower at $21.30.