Magellan appoints former funds management exec to its board
Embattled fund manager Magellan has appointed former Janus Henderson co-chief executive Andrew Formica to the board as a non-executive director.
Magellan chairman Hamish McLennan said the appointment was part of the board’s “ongoing renewal process”. It has been welcomed by activist investor Sandon Capital.
Andrew Formica, ex co-CEO of Janus Henderson Group.
The 52-year-old Australian was previously the CEO of Henderson Group, which merged with Janus Henderson in 2016. But after a power struggle at the enlarged group, Mr Formica departed in 2018.
In June 2022, he suddenly resigned from the another listed asset manager, Jupiter Asset Management, after three years at the helm declaring his intention to “sit on the beach and do nothing”.
The once high-flying Magellan has had a rough three years in which its co-founder and chief investment officer, Hamish Douglass, departed and its funds under management slid from $118 billion to less than $40 billion.
Magellan’s share price has retreated from $47 in mid-2021 to below $10, matching its falling earnings. That has attracted bargain hunters and activists such as Sandon, which has called for Magellan to return excess capital to shareholders, given half its sharemarket value can be ascribed to cash and capital held in seed investments.
The company has taken steps to stem the decline. That includes the appointment of former Future Fund deputy chief investment officer David George as its chief executive.
Mr George has outlined a strategy to restore its funds under management to $100 billion by repairing investment performance and adding new strategies.
In December 2022, shareholders agreed to increase annual director fees from $750,000 to $1.75 million, which Mr McLennan said
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