Magellan (ASX:MFG) share price sinks 11% as Douglass steps down for 'medical leave'

Magellan's shares are falling again…

| More on:
A man sits in front of his laptop computer with his head on his hand and a sad, dejected look on his face after seeing how far Whitehaven shares have fallen today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Magellan share price has been sold off again following the release of two announcements
  • The first reveals that its funds under management have reduced once again
  • The other reveals that its Chairman and CIO is taking a period of medical leave

The Magellan Financial Group Ltd (ASX: MFG) share price has come under pressure on Monday morning.

At the time of writing, the embattled fund manager's shares are down 11% to $16.52.

This means the Magellan share price is now down 67% over the last 12 months.

Why is the Magellan share price under pressure?

Investors have been selling down the Magellan share price on Monday following the release of two announcements.

The first reveals that Magellan's funds under management (FUM) continued to fall during the first month of 2022.

According to the release, the company's FUM fell 2% during January to A$93,538 million. This was despite the Australian dollar falling 3.1% over the same period, which would have boosted the value of its investments held in US dollars.

What else is happening?

Also weighing heavily on the Magellan share price is news that its Chairman and Chief Investment Officer, Hamish Douglass, has requested a period of medical leave to prioritise his health. This follows "a period of intense pressure and focus on both his professional and personal life."

Hamish McLennan, previously Magellan's Deputy Chairman, has been appointed as Magellan's independent non-executive Chairman in place of Mr Douglass.

Replacing Mr Douglass' portfolio management duties will be Chris Mackay, who was Magellan's inaugural Chairman and its Chief Investment Officer from inception in 2006 to 2012.

The Board notes that he is a highly experienced and respected global equity portfolio manager, with a very strong long-term record of managing global equities.

Mr Mackay will continue as Managing Director and Portfolio Manager of ASX listed MFF Capital Investments Ltd (ASX: MFF). This task is made all the more easier given the fact that MFF and Magellan share offices and Mr Mackay has a long-standing and constructive working relationship with Magellan's investment and support teams.

Magellan's Chairman, Hamish McLennan, commented: "The Board wholeheartedly supports Hamish's decision to prioritise his health and Magellan is committed to providing him the time and support he requires. I am grateful that Chris Mackay has agreed to oversee the portfolio management of Magellan's global equity retail funds and global equity institutional mandates, alongside Magellan's excellent existing global portfolio managers."

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 9 January 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 44%

Investors are sending the ASX All Ords stock racing higher today. But why?

Read more »

A man stands with his arms crossed in an X shape.
Financial Shares

No deal! Why this ASX 200 stock is falling today

Bain Capital won't be taking this stock private for just $4.00 per share.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Financial Shares

ASX 200 financial stock's $2.2 billion private equity deal in serious doubt

The deal has been dealt another blow.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Financial Shares

Are IAG shares expected to have another strong year in 2025?

Can this large stock ensure another strong return next year?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Top broker says buy this 'compelling' ASX 300 dividend stock now

This under-the-radar stock could be a strong contender for passive income.

Read more »

Businessman studying a high technology holographic stock market chart.
Financial Shares

Could 2025 be an even better year for AMP shares after a 70% rise in 2024?

Can AMP deliver electric returns again in 2025?

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Financial Shares

Guess which ASX 200 share just received a $2.68b takeover offer

Private equity firm Bain Capital has its eyes on this financial services company.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Financial Shares

Why are Platinum shares sinking 26% to a record low on Thursday?

Rock bottom! That's where this struggling fund manager's shares are today. But why?

Read more »