Updates

** Shares of Australia's Magellan Financial MFG.AX fall as much as 7.3% to A$8.93, their lowest level since February 27

** Morningstar cuts fair value estimate after fund manager hands management of its flagship global equity funds to low-cost partner

** Cuts fair value to A$8 per share from A$8.65, says change of ownership reflects rising competitive pressure

** Notes MFG reducing fees on ~A$5 billion ($3.62 billion) of assets, gives up performance fees on those strategies

** Warns changes limit near-term recovery; adds it does not expect earnings improvement

** Two of seven analysts rate the stock "buy" or higher, two "hold" and three "sell" or lower; their median PT is A$9.65, LSEG data shows

** YTD, MFG down 10%

($1 = 1.3822 Australian dollars)