The market is focusing on the monthly outflows being disclosed,...

The market is focusing on the monthly outflows being disclosed, but I would imagine that even amongst those clients who remain (for now), those who have any ability to negotiate their existing fees down would be mad not to be doing so with gusto. Institutional clients with mandates who remain but are agnostic/undecided about leaving could certainly push for fee reductions in the interim whilst they give MFG some more rope. Master fund clients who can replace the underlying managers in their pools could probably do the same (no halo around MFG anymore, not a requirement to have them on menus like a decade ago). Advice dealer groups with meaningful exposure could also use their buying power to push for fee rebates to be paid to their clients. What push back does MFG have to this when it happens?

People are tired of Magellan's high fees and lack of performance. If MFG stick their heads in the sand and don't reduce fees, the FUM is quite likely to leave, some in short order and more in the next downturn when CGT ceases to be a soft lock in (for some).
So much for sticky FUM...many of their fund investors are likely looking for any excuse to get out and save face with their own clients...intransigence on fees presents that opportunity. You can imagine the conversation with clients going something like: "hey, the market has shifted in terms of pricing, and these underperformers in your portfolio (who also have organisational issues) weren't willing to reduce their fees, so we're exiting them to protect your interests"

Once the market wakes up to this trend and realises that outflows are only one part of the story, I would expect that MFG will tank further. They will have to sell non-core assets and cut costs and staff to survive.