Magellan appoints MD after George’s exit
Magellan has appointed Sophia Rahmani, chief executive of Maple-Brown Abbott, as its new managing director.
Rahmani will join the firm in May 2024, and it is intended she will transition to a chief executive role within 12 months, at which point executive chairman Andrew Formica will move to a non-executive role.
The role will see her take responsibility for investment, distribution, information technology, human resources, risk and compliance functions.
Formica said Rahmani will focus on the fund management business, while he will look after the “strategic development” of the wider Magellan business.
She has been the chief executive and managing director of Maple-Brown Abbott since 2019, and previously served as the chief operating officer, Pan Asia, at Janus Henderson Investors. Formica is the former co-chief executive of Janus Henderson Investors.
She also spent eight years at Macquarie Group in its asset management division.
Previous chief executive, David George, left the firm last October in a surprise move after just over a year in the role.
Rahmani said: “I am excited to be joining Magellan, a fund manager I have admired for its focus on clients and strong historical investment performance. I look forward to working with the Magellan team to deliver excellence in all aspects of the business.”
In light of her departure, Maple-Brown Abbott has appointed chief operating officer Melanie McQuire as acting CEO. Rahmani will step down immediately and work with the board to ensure a smooth transition of responsibilities.
The role of Maple-Brown Abbott Limited CEO and managing director does not include direct investment responsibilities, it said, and these will continue to be fulfilled by chief investment officer Garth Rossler and the relevant heads of investment strategies.
Financial results
In its full-year results for the year to 31 December, the firm reported a statutory net profit after tax (NPAT) of $104 million, up 24 per cent from $83.8 million in the prior corresponding period.
Average funds under management (FUM) was down 31 per cent from $53.8 billion to $36.9 billion.
The firm also announced a focus on its US distribution platform as well as plans to offer a new product, the Magellan Unconstrained Fund, to retail investors.
“These initiatives and progress demonstrate that we are moving forward with pace at our strategic objective of becoming the asset manager of choice in the Australian market across a diversified offering. This includes continuing to assess the strategic growth opportunities that are value accretive to the business and our shareholders,” said Formica.
The firm announced an interim dividend of 29.4 cents per share, 50 per cent franked, which is payable on 6 March.
AUTHOR
Laura Dew
Recommended for you
Vanguard and State Street have debated active ETFs, and whether they are the next vehicle for growth, or forever in the shadow of index-tracking funds.
The conversion of the Magellan Global Fund units has contributed to $0.7 billion in outflows for the fund manager in August.
Australia could see a rate cut by Christmas, according to AMP’s Shane Oliver, if consumer price index inflation falls faster than expected.
Ahead of her keynote address at the Women in Finance Summit 2024, Ella Baché CEO Pippa Hallas reveals the secrets to building a business empire that embraces disruption.
