Magellan confirmed on Thursday that Hamish Douglass will resume working with the business in a new consultancy role, following his sudden departure in February over health reasons.
Although back at Magellan, Mr Douglass will cease to be a permanent member of the firm’s staff on 15 June before commencing the consultancy role on 1 October, a role that, the firm said, will enable him to deliver his expertise to investors free from board, management and portfolio responsibilities.
“The board and Hamish have carefully considered the right balance for Hamish, for Magellan and most importantly for our clients as they navigate global markets. Hamish’s appointment in this new role is another important step as Magellan moves forward as a focused global funds manager,” said Magellan chairman, Hamish McLennan.
The firm also advised that the appointment of David George as chief officer and managing director has been brought forward to 19 July from 8 August 2022.
“The board has received very positive feedback from clients and investment professionals globally following the announcement on 11 May 2022 of the appointment of David George as chief executive officer and managing director of Magellan,” Mr McLennan said.
Earlier this week, Magellan reported a substantial decrease in funds under management (FUM), following a slump in global equities.
In an ASX listing on Monday, Australian equities dropped to $9.1 billion from $9.9 billion, while global equities contracted to $35.2 billion from $38 billion, and infrastructure equities remained flat at $20.7 billion.
Retail FUM, which is becoming increasingly crucial for the business, dipped to $23.6 billion on 31 May from $24.8 billion on 29 April. Institutional FUM followed the downward trend, dropping to $41.4 billion from $43.8 billion.
Magellan has had a tumultuous year after the announced departure of then chief investment officer Hamish Douglass. Just months before his shock leave of absence on medical grounds, Magellan suffered a hefty setback when St James’s Place withdrew its mandate worth $24 billion in FUM.
Magellan’s has since shifted its focus to strengthening governance and accountability across the business.
It will be good to see Hamish back – hopefully his reappearance wioll have a positive effect on the free-falling stock price of Magellan.