Veteran Magellan head of investments and listed infrastructure leader, Gerald Stack, is to step down amid a portfolio management reshuffle at the ASX-listed fund manager.
Stack, who joined Magellan in 2007 soon after the company was founded following an eight-year career at Capital Partners, will officially depart in July to “ensure a smooth transition of responsibilities and continuity for clients”, according to a release.
“He now feels the business has the stability and direction it needs for the future and will take some time off before pursuing his next opportunity,” the statement says.
Magellan has seen significant executive and investment team volatility over the last few years in the wake of a leadership meltdown that saw co-founder, Hamish Douglass, leave under a cloud early in 2022.
The firm’s funds under management fell by about 70 per cent from a high of almost A$116 billion in December 2021 to stabilise at its current level of roughly A$38 billion.
Since assuming control of Magellan in 2023, executive chair, Andrew Formica, has embarked on a restructure with new managing director (and chief executive-in-waiting), Sophia Rahmani, among a string of appointments.
As well as Stack’s exit, the group revealed a stack of executive hires last week, including: former Maple-Brown Abbott ESG leader, Emma Pringle, as head of sustainability; ex AllianceBernstein Australia and NZ head, Jen Driscoll, as chief operating officer; Sam Mosse to join as chief risk officer in April after filling a similar role at Perpetual; and, Simon Barrett, as UK-based head of distribution for the region.
Meanwhile, Magellan portfolio manager, Nikki Thomas, has dropped her duties on the flagship Global Fund to “focus exclusively on the Magellan High Conviction” strategy while Arvid Streimann and newish recruit, Allen Pullen, look after the core international equities fund.
The Magellan share price dived on the latest news, closing out the week down almost 14 per cent.
Former Lombard Odier UK-based global equities portfolio manager, Andrew Gowen, will support Thomas on the high conviction strategy. Gowen returns home to Australia after a 25-year career managing international share portfolios in the US and UK.
As at the end of December, Magellan reported A$38.6 billion under management – down from A$39.1 billion on November 30 in a month that saw A$400 million of net outflows, split evenly between retail and institutional clients.
The A$16.6 billion global listed infrastructure portfolio overseen by Stack now represents the largest asset class in the Magellan mix followed by international shares (A$14.5 billion) and the A$7.5 billion Australian equities business marketed under the Airlie brand.
Last August, the firm also acquired an almost 30 per cent stake in Australia-based quant investing house, Vinva, for A$138.5 million.
Vinva, headed by the well-regarded Morry Waked, has registered eight funds in NZ under the trans-Tasman Mutual Recognition regime including five issued since the Magellan purchase.
Elsewhere, Mercer is recruiting for a new senior investment consultant for its Auckland office to replace Hady Saad who left the business recently.
Among other duties, the Mercer role entails offering “tailored investment advice to clients, focusing on strategic asset allocation, portfolio construction, manager selection, and performance monitoring”.
Mercer won a number of new clients last year including the NZ Post staff retirement fund, the local government superannuation and KiwiSaver schemes and a consulting gig with Annuitas.
Annuitas has also formally put its chief investment officer position out to the market after incumbent, Anthony Halls, resigned last month.
As reported earlier, Halls is due to leave the business – which manages the Government Superannuation Fund and the National Provident Fund – at the end of March.
The Wellington-based role includes responsibility for “developing the investment strategy for, and leading the management of, our clients’ diverse funds”.