Magellan undertaking board review

In response to stakeholder feedback, Magellan has provided further detail in relation to Hamish Douglass' consultancy role, which was announced in June.

In a listing filed with the ASX ahead of the firm's annual general meeting on Wednesday, the fund manager said: “Mr Douglass will provide valuable investment insights to the businesses”.

While the commencement date of the consulting agreement is 1 October, Mr Douglass will commence earning the consulting fees from 7 February 2023.

“Having regard to the scope and frequency of the services to be provided by Mr Douglass under the consulting agreement, the fees payable are commensurate with the fees paid to other consultants engaged by the group,” Magellan said.

“The board considers that Mr Douglass remains an important resource for the company,” the firm added.

Although back at Magellan, Mr Douglass ceased to be a permanent member of the firm's staff on 15 June.

Magellan has had a tumultuous year after the announced departure of then chief investment officer, Mr Douglass. Just months before his leave of absence on medical grounds, Magellan suffered a hefty setback when St James's Place withdrew its mandate worth $24 billion in funds under management (FUM).

Magellan has since shifted its focus to strengthening governance and accountability across the business.

However, despite its apparent revamp, which included the appointment of David George as CEO, Magellan has reported subsequent and sizeable drops in FUM.

FUM fell again in August to $57.6 billion from $60.2 billion reported in July.

Commenting on the appointment of Mr George in June, Magellan chairman Hamish McLennan said: “We acknowledge that there is more work to do. I am very confident that David, working with Magellan's best-in-class team, will achieve strong client outcomes over the years.”

Magellan undertaking board review

Among the key items on Magellan's agenda ahead of the general meeting on 20 October is the re-election of McLennan as chairman.

“The board supports Mr McLennan's re-election as it considers that Mr McLennan's global corporate leadership and governance oversight experience deepens the board's existing skills and expertise,” Magellan said.

Moreover, in a letter to shareholders included in the ASX filing, Mr McLennan said Magellan is currently undertaking a board review and renewal program to “ensure we have the right skill mix, expertise, independence and diversity” to support its future strategic direction.

As part of this program, the fund manager is targeting a board of seven, comprised of six independent, non-executive directors and managing director, Mr George.