Magellan Financial Group has named Andrew Formica as non-executive chairman of the board less than a month after being welcomed to the board.
In its full-year results released to the ASX on Friday, Magellan Financial Group reported a 57 per cent decrease in adjusted net profit after tax (NPAT) to $174.3 million, with Mr Formica asserting that he is motivated to return Magellan to “a growth footing”.
“I look forward to working with the board and management team as we continue the journey to restore Magellan to its rightful place as Australia’s leading fund manager,” he said in a statement on Thursday.
As such, current chair Hamish McLennan will transition to the role of deputy chair and non-executive director.
Mr Formica commended Mr McLennan for having “stabilised Magellan through unprecedented circumstances” during his time as chair.
Commenting on the transition, Mr McLennan said: “Despite challenges over the recent past, we have kept a talented team together, improved investment structures, and begun to stabilise FUM. There is more work to do and the board remains focused on improving shareholder outcomes as we enter a new phase for Magellan.
“Andrew is expertly positioned to take the reins and lead Magellan’s growth agenda. He has run global funds management and understands the importance of fostering a strong culture. I look forward to supporting him in my new capacity as deputy chair.”
On Thursday, Magellan also announced the appointment of Deborah Page as non-executive director, effective on 3 October, to replace retiring board member Robert Fraser.
Ms Page will also become chair of the audit and risk committee, with David Dixon to serve as chair of the committee in the interim, in addition to joining the board of the group’s main operating subsidiary, Magellan Asset Management Limited.
“We are pleased to welcome Deborah to the board. She is a deeply experienced company director with broad experience spanning various ASX-listed, private, public sector, and regulated entities,” Mr Formica commented.
“Importantly, she brings funds management pedigree, having held chair roles at Pendal Group Limited and Investa Listed Funds Limited. We expect she will make a substantial contribution to the board.”
He also thanked Mr Fraser for his time on the board.
“Robert has also made a tremendous contribution to Magellan over a long period, and we thank him for his service.”
Mr Fraser added: “It has been an honour to serve on the board of Magellan and I have complete confidence in Andrew’s ability to lead Magellan as chair.
“I remain focused on applying my knowledge of Magellan in my capacity as chair of Magellan’s main operating subsidiary, Magellan Asset Management Limited.”
These appointments and changes form part of the group’s ongoing board renewal process previously announced to shareholders.