MFG@$10, page-41

Sadly @lost, this business is in so much trouble that anything they do will have an adverse negative impact.

If they cut fees, their profits will be structurally lower and the problem of underperformance will still not be resolved.

Furthermore, they could also lose their key investment staff - not that that should matter as they can't even beat the index, but cutting fees means that Magellan would likely need to let go or negotiate less generous pay structures with their personnel.

As I said, these guys can't even beat the index so that shouldn't matter, but the optics of key investment staff leaving mean that research houses will slap their strategies with more downgrades and institutions would become even warier.

This is one of those awful situations of: "Damned if you do. Damned if you don't."