Magellan Financial Group Ltd (ASX: MFG) announced this morning that CEO Hamish Douglass would change his role to Chairman of the fund management business. The company also announced its September 2018 funds under management (FUM) numbers.
Management changes
All non-investment team related functions will report to new CEO Dr Brett Cairns, who has been the Chairman since 2013, and Executive Chairman since January 2015.
The change will allow Hamish Douglass to focus his efforts as the Chief Investment Officer and the Lead Portfolio Manager of Magellan's global equities.
Hamish Douglass said "Making this change reflects a progression of the roles Brett and I have been undertaking over the past few years. I have full confidence in Brett's ability to lead the day-to-day operations of Magellan as CEO and I am excited to be able to concentrate on our client's investments and the ongoing strategic development of Magellan."
Funds under management
At 28 September 2018 Magellan's total FUM had declined by $67 million compared to the end of August 2018. Its total FUM fell slightly to $74.55 billion despite net inflows of $86 million.
Its total retail FUM grew by $90 million, however Australia & New Zealand and North American institutional money fell $111 million and $308 million respectively. 'Rest of world' institutional money increased by an impressive $262 million.
Foolish takeaway
Magellan is trading at 17x FY19's estimated earnings, which I think is a decent price but I'm not jumping at it right now. If the US share market were to fall then I'd become interested in Magellan considering its new large dividend policy.
