The fund manager’s troubles started with the unexplained resignation of chief executive Brett Cairns, which spooked investors as there was no immediate replacement. Interim chief executive Kirsten Morton remains in the role, but a permanent position is yet to be announced.

Cairns’ resignation was followed by mounting pressure over under-performance at Magellan’s flagship global equities fund and personal problems for star founder and chief investment officer Hamish Douglass, which later saw him stand down for medical leave.

Magellan has announced Douglass will not return to the company’s board as the new leadership team under chair Hamish McLennan seeks to lift the governance of the organisation by separating investment and oversight roles.

The leadership uncertainty and underperformance caused Magellan to lose its largest investment mandate with UK-based St James’s Place which was worth about $23 billion. Magellan co-founder Chris Mackay travelled to Europe in March to meet with institutional clients this month to answer questions about the business and ease investor concerns.

In the process, some investors have dumped Magellan stocks, while others have made millions short selling the company. Analysts have said the recent reduction in fund outflows does not necessarily mean the worst is over, and have stressed the need for performance to turn around.