The asset manager said in an ASX listing on Wednesday that Kirsten Morton has resigned as chief operating officer and chief financial officer of the group.
Andrew Formica, executive chairman, said: “Kirsten has been instrumental to the company and its senior management team since she joined Magellan in June 2013.
“In particular, Kirsten provided outstanding leadership and stability when she stepped into the role of interim chief executive officer from December 2021 until July 2022. The board is grateful to Kirsten for her immeasurable contribution to Magellan over many years and we wish her all the best in her future endeavours,” Formica added.
Morton is expected to continue in her role as chief operating officer and chief financial officer until the end of 2024, with the company now set to commence a search process for her replacement.
Magellan has gone through significant change over recent years.
At the company’s recent 2024 annual general meeting, executive chairman Formica announced that the firm’s FUM – which has been in a downward spiral since Hamish Douglass relinquished his portfolio management duties in February 2022 – has stabilised.
As of 30 September 2024, Magellan’s funds under management (FUM) stood at $38 billion, higher than the average for FY2023–24 of $36.8 billion.
In February, the firm announced several changes, including the appointment of Sophia Rahmani to the role of managing director of Magellan’s main operating subsidiary, Magellan Asset Management Limited, effective in May 2024, with plans to appoint her as Magellan’s chief executive within 12 months. Magellan confirmed at the time that once Rahmani transitions to CEO, Formica would revert to non-executive chairman.
Also at the time, Formica said he would remain as the executive chair for an interim period to ensure the firm maintains continuity and stability, focusing his attention on Magellan’s strategic development, while Rahmani focuses on the firm’s funds management business.
“With a new executive leadership structure in place and a number of legacy issues behind us, including having addressed the Employee Share Purchase Plan loans and the uncertainty around our Magellan Global Fund (Closed Class) (MGF), I am confident the business is in a strong position to rebuild and grow,” Formica said.
“I am encouraged by the progress we are making and am confident our strong foundations position us well to deliver positive outcomes for our clients and shareholders.”
Rahmani’s appointment to replace David George, who fulfilled the role of CEO and managing director for only 15 months, was widely considered a move to revamp the fund manager’s image following years of turbulence.
In February this year, Morningstar said that while Rahmani’s appointment “is an encouraging step forward for the group after the challenged period under David George’s leadership”, it wouldn’t impact its ratings for the firm’s range of funds.
“There have been significant changes in responsibilities since Hamish Douglass relinquished his portfolio management duties in February 2022,” Morningstar said.
Unlike George’s tenure, the ratings firm described Formica’s appointment in July 2023 as one that brought “much-needed funds management experience to the board”.
