Arvid Streimann, Head of Global Equities at Magellan Financial, has abruptly resigned following an investigation into an alleged relationship with a junior employee. Streimann, who oversaw Magellan’s flagship fund with approximately $12.5 billion in assets, departed on Wednesday, the same day the Australian Financial Review’s Rear Window column reported the probe. Magellan Financial Group is an Australian-based investment management firm that provides investment solutions to retail, high net worth and institutional investors. The company manages investments across a range of asset classes, including global equities, Australian equities, and infrastructure equities.
In a statement to investors, Magellan stated its commitment to maintaining appropriate workplace standards. Streimann’s exit adds to a series of departures from the company, which once managed over $115 billion but now oversees around $40 billion due to outflows attributed to poor returns and investor concerns about turnover in key personnel. Before joining Magellan, Streimann held positions as a sell-side analyst at Morgan Stanley and UBS, and as an economist at the Reserve Bank of Australia.
Previous departures include Brett Cairns in December 2021, attributed to “personal reasons,” and star stock picker and co-founder Hamish Douglass, who initially took medical leave before selling a majority stake. David George, formerly of the Future Fund, and Andrew Formica, previously co-CEO of Janus Henderson, briefly filled their roles. Sophia Rahmani became chief executive earlier this year, with Formica remaining as non-executive chairman.
Additionally, veteran infrastructure portfolio manager Gerald Stack announced his departure in late January, impacting Magellan’s share price. Despite these challenges, Magellan’s global fund reported a 14 per cent return after fees in the last year, exceeding its objective by 5 per cent, although falling 8.7 per cent below its benchmark. Since its 2007 inception, the fund has averaged an 11.33 per cent annual return, surpassing the MSCI index it tracks by approximately 2.3 per cent.
