Magellan Financial Group’s co-founder Hamish Douglass resigned as an independent director Monday, more than a month after he took medical leave from the chairman and chief investment officer roles.
Douglass said his resignation is solely due to his medical leave of absence, the Australia-listed financial group reported in a filing to the exchange.
Magellan Financial said it is continuing to search for an additional independent director.
Fund Outflows
The resignation comes as Magellan Financial is facing significant fund outflows.
Magellan reported it had funds under management of around A$69.1 billion ($51.12 billion) as of 11 March, down from A$77.2 billion on 23 February, due to market movements amid recent volatility and net outflows, including notifications of intention to redeem. At end-June 2021, funds under management of A$113.9 billion, according to Magellan’s fiscal first half earnings statement.
Net outflows, including notifications of intention to redeem, between 25 February and 11 March were around A$5 billion, including net institutional outflows of A$4.7 billion, the financial group reported.
Lost Institutional Mandate
That followed news in December that Magellan had lost its largest institutional mandate, which was from British wealth manager St James Place (SJP), which was set to wipe out around 12 percent of the Australian firm’s yearly revenue. The SJP mandate was around A$23 billion, according to Magellan’s fiscal first half earnings statement.
In early February, Magellan Financial said Douglass had requested a period of medical leave to prioritise his health «after a period of intense pressure and focus on both his professional and personal life.»
Chris Mackay was appointed to oversee the portfolio management of the global equity retail funds and the global equity institutional mandates, Magellan said in a filing to ASX in February. Mackay was the inaugural chairman and was chief investment officer from inception in 2006 to 2012, the February filing said.
Management Shuffle
Since 2013, Mackay was managing director and portfolio manager of ASX-listed MFF Capital Investments, which shares offices with Magellan, the February filing said.
In addition, Nikki Thomas rejoined Magellan as a co-portfolio manager of the global equity strategies, Magellan said in February. Thomas was with Magellan from 2007 to 2017, the filing said.
Hamish McLennan, who was previously Magellan’s deputy chairman, was appointed as independent non-executive chairman in place of Douglass in February, the filing said.
