The Magellan Financial Group Ltd (ASX: MFG) share price has come under pressure on Monday morning.
At the time of writing, the embattled fund manager's shares are down 11% to $16.52.
This means the Magellan share price is now down 67% over the last 12 months.
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Why is the Magellan share price under pressure?
Investors have been selling down the Magellan share price on Monday following the release of two announcements.
The first reveals that Magellan's funds under management (FUM) continued to fall during the first month of 2022.
According to the release, the company's FUM fell 2% during January to A$93,538 million. This was despite the Australian dollar falling 3.1% over the same period, which would have boosted the value of its investments held in US dollars.
What else is happening?
Also weighing heavily on the Magellan share price is news that its Chairman and Chief Investment Officer, Hamish Douglass, has requested a period of medical leave to prioritise his health. This follows "a period of intense pressure and focus on both his professional and personal life."
Hamish McLennan, previously Magellan's Deputy Chairman, has been appointed as Magellan's independent non-executive Chairman in place of Mr Douglass.
Replacing Mr Douglass' portfolio management duties will be Chris Mackay, who was Magellan's inaugural Chairman and its Chief Investment Officer from inception in 2006 to 2012.
The Board notes that he is a highly experienced and respected global equity portfolio manager, with a very strong long-term record of managing global equities.
Mr Mackay will continue as Managing Director and Portfolio Manager of ASX listed MFF Capital Investments Ltd (ASX: MFF). This task is made all the more easier given the fact that MFF and Magellan share offices and Mr Mackay has a long-standing and constructive working relationship with Magellan's investment and support teams.
Magellan's Chairman, Hamish McLennan, commented: "The Board wholeheartedly supports Hamish's decision to prioritise his health and Magellan is committed to providing him the time and support he requires. I am grateful that Chris Mackay has agreed to oversee the portfolio management of Magellan's global equity retail funds and global equity institutional mandates, alongside Magellan's excellent existing global portfolio managers."
