The retirement of Magellan Financial Group's (ASX:MFG) head of investments, Gerald Stack, could lead to sizeable near-term redemption risks and a 30% decline in infrastructure funds under management over the next few years, according to a Jan. 31 note by Jarden Research.
The company said that after more than a decade of service, Stack will step down as head of the listed infrastructure team and will remain with the firm until July to complete his transition.
However, Jarden notes that redemptions might be somewhat contained due to fewer competing infrastructure products in the market and competitively priced infrastructure retail funds.
The firm downgraded MFG's rating to underweight from neutral and cut its price target to AU$9.35 from AU$10.25.
Magellan Financial Group's shares rose past 2% in recent Tuesday trade.
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