Ann: Global Equities webinar, page-2

When you think about it everything that could have gone wrong with Magellan did;

- Significant underperformance of Global equities strategy leading to outflows and the loss of largest client.
- CEO leaves for personal reasons
- CIO / Founder / Chair leaves for health reasons

I think the portfolio is in good hands with Chris Mackay (Co-founder, ex-CIO) and Nikki Thomas (Ex-Head of research) however the outflows won't stop until either relative performance significantly improves or magellan become more competitive in terms of fees. I think there has been damage to the magellan brand and therefore attracting new capital may be more difficult going-forward. I know a few from Frank's team have accepted offers from competing firms and there's possibility for employee turnover to increase.

I can't see any further significant bad news (Outflows will continue but will slow down). I don't regret selling out at $32 but I may regret not buying a small position when the dust settles. I'm actually quite confident this company will eventually turn it around but it will take time to rebuild FUM flows and resolve internal problems. Magellan has a great balance sheet and is more than just global equities (Airlie, infrastructure, Finclear, Barrenjoey, GyG).

Cheers,
Plague.