Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Magellan (ASX:MFG) share price on watch as CEO resigns

The Magellan Financial Group Ltd (ASX: MFG) share price will be on watch today after the funds management firm announced the resignation of Chief Executive Officer (CEO) Brett Cairns overnight.

It’s been a turbulent year for the Magellan share price, sinking 41% over 2021.

MFG share price

Source: Rask Media MFG 1-year share price
Source: Rask Media MFG 1-year share price

End to 14-years of service

Magellan cited personal reasons for Mr Cairns exit.

Current Chief Financial Officer (CFO) Kirsten Morton, who has been the Magellan for eight years, will be appointed CEO on an interim basis.

Mr Cairns originally joined Magellan as a non-executive director in 2007. Subsequently, he joined the executive team in 2015.

He resumed the top job at Magellan in 2019 replacing founder Hamish Douglass who stepped into the Executive Chairman role.

Brett was instrumental in the development of Magellan’s exchange traded products and in the development of Magellan’s retirement product, FuturePay. On behalf of the Company, I would like to thank Brett for his extensive contribution to Magellan since 2007 and wish him all the very best in his future endeavours.” – Hamish Douglass

Rocky 2021

Magellan has been facing criticism over the past 18 months as its flagship global fund significantly underperformed its benchmark.

An outsized position in Chinese conglomerates and a cautious cash position weighed on performance as markets rallied.

Subsequently, the fund achieved just an 8.5% return over the past year compared to 31.3% for the index.

As a result of the poor performance, the company’s track record across three and five year periods has also been dragged down.

Fees have also been a concern. Its 135 basis point management fee is at the upper end of its peers.

Some analysts suggest a fee cut may be on the horizon or potential outflows, however, Mr Douglass has defended the firm:

“On fees. On the institutional business, which is $80 billion in funds under management. We haven’t seen any questions or pressures on fees whatsoever. We are highly, highly competitive there”.

“I haven’t found any sort of institutional investors who actually find any sort of concern about what’s going on” – Hamish Douglass

“But do we think our overall proposition is uncompetitive in the retail market? No, we don’t. We’re not about to slash fees. It’s not something that we’re hearing”.

To keep up to date on all the latest news regarding Magellan and the ASX, be sure to bookmark the Rask Media home page.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Lachlan does not have a financial or commercial interest in any of the companies or funds mentioned.
Skip to content