Zenith Investment Partners says Hamish Douglass’ indefinite leave was a “material loss” for the group as it cut ratings on five of Magellan’s global funds managed funds to “recommended” from “highly recommended”.

The influential firm, which has also selected the Magellan Global Fund in its model portfolios, said the action followed meetings with key Magellan executives and management after the shock decision by Hamish Douglass, its co-founder and chief investment officer, to take indefinite medical leave.