Credit:<\/span>Brook Mitchell<\/cite><\/p>\nDecember outflows at Magellan were $2.6 billion, comprising of $0.6 billion in retail and $2 billion in institutional net outflows. It comes after $2.5 billion in outflows in November and $2.4 billion in October.<\/p>\n
Funds under management now sit at $45.3 billion, down from $50.2 billion at the end of November. In mid-2021, the firm boasted funds under management of $113.9 billion. Magellan\u2019s share price has fallen more than 50 per cent in the past year.<\/p>\n
The fund manager is trying to recover from a troubled 2022 during which it shed billions in funds under management as senior management, including high-profile stock picker and founder Hamish Douglass, left the company.<\/p>\n
New chief executive David George has emphasised that they are working to win back clients\u2019 trust and stem the outflows that have plagued the business for months by focusing on \u201ckeeping it simple\u201d and returning to its roots as a conventional funds manager.<\/p>\n
He aims to return funds under management to $100 billion in five years.<\/p>\n
The latest update showed that average funds under management for the last six months of last year was $53.8 billion, compared to $112.7 billion for same period the year before.<\/p>\n
Performance fees for the six months ended ending December 31 were \u201cnot meaningful\u201d, the company said.<\/p>\n
Magellan funds will pay distributions of $0.3 billion in January which will be reflected in next month\u2019s funds under management figures.<\/p>\n
The shaky end to 2022 comes after shareholders voted in favour of increasing fees for non-executive directors by $1 million at a meeting in December. The increased cap for non-executive director pay from $750,000 to $1.75 million is part of the company\u2019s strategy to renew and expand the board.<\/p>\n
Magellan aims to appoint two new non-executive directors to the board and wants to increase the fees of current directors Robert Fraser, Colette Garnsey, John Eales and chair Hamish McLennan.<\/p>\n
Despite some pointed questions from shareholders, who asked why they should support the increase given Magellan\u2019s share price has tumbled, the vote was comfortably passed with almost 95 per cent voting in favour of the resolution.<\/p>\n
At the December meeting, the chair told shareholders that a lot of the outflows had been caused by the \u201cinstability of Hamish\u2019s departure\u201d.<\/p>\n
\u201cAnd there were a lot of institutional relationships that were tied to Hamish that, no matter what anyone could have said or done, I think was a difficult situation for the board to get their heads around,\u201d he said.<\/p>\n
Douglass, who split from his wife at the end of 2021 before announcing he was taking medical leave after \u201cintense focus\u201d on his personal and professional life, has returned to the firm as a consultant, not an employee.<\/p>\n
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