Magellan Financial taps Future Fund executive David George as new CEO

Future Fund executive David George has been appointed the new CEO of Magellan Financial following a turbulent year.

Magellan Financial has appointed Future Fund executive David George as its new CEO. Picture: Supplied

Magellan Financial Group has tapped Future Fund veteran David George as chief executive and managing director after a tough year exacerbated by high profile executive departures including co-founder and former chairman and chief investment officer, Hamish Douglass.

Highly regarded in the investment community, Mr George brings two decades of experience in analytical roles, investment management and organisational leadership in Australia and Canada.

He currently oversees more than $170bn as deputy chief investment officer of public markets at the Future Fund, where he has spent the past 14 years and will stay to support a smooth transition as Australia’s sovereign wealth fund considers its options to fill the role.

Mr George will start on a base salary of $1.8m plus an additional signing bonus of $600,000.

Before his time at the Future Fund, Mr George held a senior role at Mercer Consulting.

He also worked at Royal Bank of Canada and Integra Capital Management in Toronto.

Mr George is due to start with Magellan by August 8 at which point interim CEO Kristen Morton will start a dual role as chief operating officer and chief financial officer.

Magellan chairman Hamish McLennan said the global fund managers’ new CEO had an “outstanding investment management pedigree” and “deep funds management experience”.

“As an external hire, David brings an outstanding investment management pedigree, a strong client service and results orientation and fresh perspectives to our team.”

“The board was unanimous in its view that David is the right person to lead Magellan.”

“We acknowledge that there is more work to do. I am very confident that David, working with Magellan’s best-in-class team, will achieve strong client outcomes over the years.”

Magellan shares lost 82 per cent of their value during the Covid-19 crisis.

From a record high of $74.91 in February 2020, Magellan plunged over the next two years.

Magellan hit a 7 1/2-year low of $13.22 in March as its funds under management shrank to less than $70bn after peaking at almost $115bn. More recently shares have been supported by the implementation of an on-market share buyback by the company.

Magellan rose 4.1 per cent to $16.52 after the announcement.

The appointment of Mr George comes after a global search following the shock resignation of Brett Cairns on December 6 and the subsequent appointment of Kirsten Morton as interim CEO.

That announcement preceded the December 20 announcement that Magellan had lost its biggest investment mandate from London-based St James’s Place.

The St James’s Place mandate, thought to be worth $21bn, represented about 12 per cent of Magellan’s group annual revenues and was expected to shave about 6 per cent from revenues for the year ended June 30.

The loss of the St James’s Place mandate came ahead of a further loss of funds under management after Magellan’s flagship Global Fund underperformed its benchmarks during the Covid-19 crisis.

On February 7, Mr Douglass took medical leave of absence to prioritise his health after intense pressure on both his professional and personal life, including separation from his wife Alexandra.

On March 21, Mr Douglass resigned as a director from the Magellan board due to his medical leave.

But Mr McLennan said Magellan is in “strong financial health”’, with the group executing on its investment strategies, capital management program and staff retention initiatives.

“We acknowledge that there is more work to do. I am very confident that David, working with Magellan’s best-in-class team, will achieve strong client outcomes over the years.”

Future Fund CEO, Raphael Arndt, said Mr George played a significant role with the Future Fund since he joined in 2008.

“He established and grew our debt and alternatives portfolio and has provided outstanding leadership as deputy chief investment officer, public markets since 2018,” Mr Arndt said.

“He leaves with our deep thanks and we wish him all the very best in his new role.”