Magellan chief executive quits

After just 18 months in the top job, Magellan boss David George is stepping down with newly appointed chair Andrew Formica running the asset manager until until a new chief executive is found.

Formica, former co-chief executive of Janus Henderson who took over as chair in August is executive chairman.

George joined Magellan in July 2022 from the Future Fund where he oversaw public markets.

In a release, the asset manager said the board said it's grateful for George's contribution during a challenging time for the business, including for his role in stabilising and improving the core funds management business, defining a strategy to diversify the business, establishing new products and enhancing client solutions.

"The appointment of Mr Formica as executive chairman maintains stability and given his significant experience leading funds management businesses ensures that Magellan continues to deliver on its strategic objectives and aid improved performance," Magellan said.

The new executive chair said the fund is well-positioned to continue to explore organic and inorganic growth opportunities.

Formica said he is committed to leading Magellan until a new chief executive is appointed and that attracting and retaining talent is a top priority.

To help achieve this, Magellan will address the existing employee plan whereby staff were issued loans to buy shares.

Magellan will make additional retention payments to staff to close out the balance of loans by September 2025.

Formica said the fund manager has initiated the development of a new employee accountability and alignment model.

The model is designed to offer staff short-term and long-term incentives that align with the goal of achieving positive outcomes for clients and shareholders. It is expected to be fully implemented by the end of June next year.

Commenting on his exit, George said Magellan remains a great business.

"I continue to believe Magellan has a bright future ahead," he added.

Funds under management have fallen dramatically from $113 billion to $35 billion in just over a year.