The Magellan Financial Group Ltd (ASX: MFG) share price has fallen amid news of the retirement of a key member of the investment team.
Retirement of fund manager
There are three segments to Magellan’s business – its global shares strategy, the infrastructure shares strategy and an ASX shares strategy.
The Magellan Australian shares segment was acquired – it’s called Airlie Funds Management. The founder of Airlie, John Sevior, has announced his intention to retire in June 2023.
Mr Sevior had an investment career that spanned over 30 years as “one of the most respected portfolio managers of Australian shares.” He founded Airlie in 2012 after 17 years in investment management and leadership roles at Perpetual Limited (ASX: PPT).
Mr Sevior was inducted into the Hall of Fame by the Australian Funds Manager Foundation for his “significant and long-standing contribution to Australia’s funds management industry.”
Who will take over?
The Airlie founder’s portfolio management responsibilities will be transitioned to Mr Matt Williams, who will become Airlie’s head of Australian shares. He will work with Emma Fisher who will be the deputy head of Australian shares and portfolio manager of the Airlie Australian Share Fund.
Mr Williams has been an investment manager for 25 years and was head of equities at Perpetual between 2011 to 2015.
There continues to be the broader Airlie investment team as well.
Management commentary
John Sevior said:
It has been my great privilege to work with an exceptionally skilled and motivated team at Airlie. I am immensely proud of what Airlie has been able to accomplish for its clients and staff and am delighted that, since partnering with Magellan in 2018, Airlie has continued to enhance its offering and provide strong outcomes for our institutional and retail clients.
I am confident that the Airlie business is left in outstanding and experienced hands with the leadership of Matt Williams and Emma Fisher and a talented team of investment analysts and financial service professionals, and I look forward to supporting a smooth transition.
Finally, I would like to thank Magellan and its staff for their exceptional support and dedication.
My thoughts on this for the Magellan share price
The Australian shares funds under management (FUM) is the smallest part of Magellan’s FUM. One person leaving shouldn’t change the prospects of Airlie or Magellan that much. But, I think it is a loss because active fund management businesses rely on the individuals involved to make those investment choices that are different to the market.
As mentioned yesterday, I don’t think Magellan is an exciting idea unless FUM starts rising organically, and it stops the outflow of investor money.
