Magellan names new investment chief

Magellan Financial Group chief executive David George has stepped down as investment head and handed the investing reins to infrastructure lead Gerald Stack.

Twelve months ago, David George took on the role of investment chief in addition to the top job, Stack became deputy Deputy CIO.

In a release, the fund said the appointments were part of a forensic review of the performance of Magellan's global equities strategies which brought changes.

"Following these changes, we have been pleased to see improvements in collaboration and information flow, analyst engagement and improved processes," the fund said.

"Investment performance in Magellan's global equity strategy has also seen early signs of improvement, generating $11 million in performance fees in the 12 months to 30 June 2023.

"Stack has been key in implementing these structural changes and is expertly positioned to lead Magellan's investment function."

In other leadership changes, Andrew Formica took over as chair from Hamish McLennan who will move to a deputy chair role.

Formica has 30 years of experience in leading and growing investment businesses within the funds management industry globally, 14 years of which were as a chief executive.

The former chief executive of the Janus Henderson Group joined Magellan last month as a non-executive director.

Deborah Page, a former chair of Pendal Group, has also been appointed as a director of the Magellan board.

Page will also take on the role of chair of the audit and risk committee.

"Despite challenges over the recent past, we have kept a talented team together, improved investment structures and begun to stabilise FUM," McLennan said.

"There is more work to do, and the board remains focused on improving shareholder outcomes as we enter a new phase for Magellan."

The chair added that Formica is "expertly positioned to take the reins and lead Magellan's growth agenda".

"He has run global funds management businesses, has an outstanding track record of building funds under management and understands the importance of fostering a strong culture. I look forward to supporting him in my new capacity as deputy chair."