Magellan Group experienced a significant decline in its share price following the release of disappointing first-quarter results, with shares falling 9.5 percent to $7.70. The investment firm disclosed that its financial markets business was severely impacted by volatile global bond market conditions during the period ending September 30.

At the company’s first annual meeting since merging with Barrenjoey in July, shareholders approved a proposal to change the company’s name to Barrenjoey Group. Chief Executive Officer Brian Benari addressed the challenges faced in the opening months of the financial year, citing substantial rate movements in global bond markets as a key factor driving down earnings in the financial markets segment.

Benari noted that while the volatility largely eased as the quarter progressed, revenue from the financial markets business was significantly lower compared to the first half of the previous year. The investment management division also saw diminished performance, with assets under management declining by 8 percent to $38 billion. This decrease was attributed to rising bond yields that negatively affected listed infrastructure valuations, alongside investor withdrawals.

Analyst Shaun Ler from Morningstar highlighted that the primary cause of the sharp sell-off was the weak performance in Magellan’s investment banking division. The firm’s results underscore the broader challenges investment houses are facing amid ongoing fluctuations in global interest rates and bond markets.