The asset manager said in an ASX listing on Wednesday that Kirsten Morton had resigned as group chief operating officer and chief financial officer.
Andrew Formica, Executive Chairman, said: “Kirsten has been instrumental to the business and its management team since joining Magellan in June 2013.
“In particular, Kirsten demonstrated exceptional leadership and stability when she stepped into the role of Interim Executive Director from December 2021 to July 2022. The Board is grateful to Kirsten for her immeasurable contribution to Magellan for many years and we wish him all the best. in its future projects,” added Formica.
Morton is expected to continue in her role as COO and CFO until the end of 2024, with the company now set to begin a search process for her replacement.
Magellan has seen significant changes in recent years.
At the company’s recent 2024 annual general meeting, executive chairman Formica announced that the company’s FUM – which has been in a downward spiral since Hamish Douglass left his portfolio management role in February 2022 – has increased. is stabilized.
As of September 30, 2024, Magellan’s funds under management (FUM) were $38 billion, higher than the FY 2023-2024 average of $36.8 billion.
In February, the company announced several changes, including the appointment of Sophia Rahmani as Managing Director of Magellan’s main operating subsidiary, Magellan Asset Management Limited, effective May 2024, with the intention of appointing her as Managing Director of Magellan within 12 months. Magellan confirmed at the time that once Rahmani became CEO, Formica would once again become non-executive chairman.
Also at the time, Formica said he would remain executive chairman for an interim period to ensure the continuity and stability of the company, focusing his attention on the strategic development of Magellan, while Rahmani would focus on the business fund management of the company.
“With a new executive management structure in place and a number of legacy issues, including the resolution of Employee Stock Purchase Plan loans and uncertainty surrounding our Magellan Global Fund (closed class) (MGF ), I am convinced that the company is on the right track. a strong position to rebuild and grow,” Formica said.
“I am encouraged by the progress we are making and am confident that our strong foundations position us well to deliver positive results for our customers and shareholders. »
Rahmani’s appointment to replace David George, who served as CEO and managing director for just 15 months, was widely seen as a move to improve the fund manager’s image after years of turmoil.
In February this year, Morningstar said that while Rahmani’s appointment “is an encouraging step forward for the group after the difficult period under David George’s leadership”, it would not impact the company’s rating. the company’s range of funds.
“There have been significant changes in responsibilities since Hamish Douglass stepped down from his portfolio management role in February 2022,” Morningstar said.
Unlike George’s tenure, the ratings firm described Formica’s appointment in July 2023 as having brought “much-needed fund management experience to the board”.
