In an investor presentation accompanying the publication of half-yearly results, Magellan’s new chairman Hamish McLennan hinted that the firm is a lot bigger than Hamish Douglass.
“Let me remind you we have a very robust business,” Mr McLennan said.
“We have a highly experienced longstanding and proven investment team.”
Magellan on Friday reported a net profit after tax of $251.6 million for the first half, a boost of 24 per cent on the prior period.
In an ASX listing, the wounded fund manager declared an interim dividend of $1.101 a share, up from 97.1 cents.
Alongside its financials, Magellan confirmed several capital management initiatives including placing all new investments via Magellan Capital Partners on hold.
The fund manager is also currently considering implementing an on-market share buy-back.
“I have been a director of Magellan since 2016 and have the greatest confidence in the team to take the business forward,” Mr McLennan said.
Also addressing listeners, Chris Mackey, Magellan co-founder, confirmed a structure is being worked on to bring Mr Douglass back.
“Hamish appears to be recovering, we’re already working on thoughtful structures for him to come back safely to focus on investment, to reconnect with global clients and deliver what investors need,” Mr Mackey said on Friday.
Mr Mackey thanked global and local professionals for their “heartwarming” support.
“The outpouring of feelings from professionals all around the world has simply been heartwarming.”
Magellan’s funds under management (FUM) sunk 6.8 per cent to $87.1 billion as at 9 February, on the back of Mr Douglass’ unexpected departure.
The firm experienced net outflows of approximately $5.5 billion since 1 January 2022, which comprised net institutional outflows of $5 billion and net retail outflows of $0.5 billion.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
