Mr Mackay said Mr Douglass’s role when he returns had not been finalised, and neither had the timeline, but it would be investment and client-facing in an indication he may not remain on the board.

“It’s good news so far that Hamish appears to be recovering, we’re already working on thoughtful structures for him to come back safely,” he said. “The outpouring of feelings from professionals all around the world... has simply been heartwarming.”

Mr Mackay emphatically ruled out any fee reductions before taking aim at lower cost competitors. “The crap has risen to the top of the water ... If you are in crappy products and index funds when the market downturns, as it will inevitably in time, or if you are in cash when there is a lot of inflation, you will not be helping your retirement savings.”

Morningstar analyst Shaun Ler welcomed the permanent appointment of Mr McLennan and said there had been ongoing criticism around Mr Douglass’ dual role of chief investment officer and chair because of the lack of accountability.

“You want the board of directors to be independent from the company so they can assess how well the management team is performing,” he said. “If the management team is not performing well, then the board has grounds to replace them somewhat.”

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Magellan’s 24 per cent increase in half-year profits was driven by a 12 per cent increase in average funds under management (FUM) over the six months to December 31, which resulted in a 13 per cent increase in fees.

Investment firm Barrenjoey Capital, in which Magellan owns 40 percent, delivered a $3 million profit swing which also beat market forecasts.

Tribeca Investment Partners senior portfolio manager Jun Bei Liu said the results were strong but did not capture the recent leadership turmoil and fund outflows.

“That result is in the past. Since that result, they have lost a significant amount of FUM. For fund managers, you have to have FUM growth momentum otherwise it is a downward spiral.”

Alongside the results, Magellan unveiled a number of shareholder initiatives including a bonus issue of options and possible share buyback. Ms Liu said this was a clear attempt to “sweeten the deal” for retail investors but warned this approach also came with negatives.

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“To me, I don’t know why they’re doing it. It is dilutive for the company, once the share price starts moving,” she said. “All of that has been put in place to try to arrest the share price decline, I don’t know if it will be enough.”

Magellan said it would make no new investments in Magellan Capital Partners, which holds stakes in restaurant chain Guzman and Gomez among others. Instead, the group’s priorities would focus on improving asset management, retaining staff, lifting governance and engaging with customers.

Ms Liu said it was important to fix the core strategy. “They need to get the investments right, get the people right.”