Feb 14, 2024
Magellan Financial Targets Rahmani as CEO of Australia Firm
Bloomberg News
,(Bloomberg) -- Magellan Financial Group Ltd. appointed Sophia Rahmani in a transitory role of managing director, with a view to make her chief executive officer within 12 months, as the struggling money management firm attempts to reposition itself following years of turmoil.
Rahmani joins from Maple-Brown Abbott Ltd. and will start in May, according to a statement Thursday. Magellan intends to appoint her CEO of the group within 12 months of her start, the statement said.
Magellan has been languishing since its peak a few years ago when co-founder Hamish Douglass grew the firm’s assets under management to more than A$100 billion ($65 billion). With fund outflows mounting since Douglass’ exit, David George was tasked with helming the money manager, but departed in October after less than a year-and-half in the top job.
Magellan Financial also on Thursday reported adjusted net income for the first half that topped analyst estimates. The stock opened about 4.6% higher.
Formica, who joined in August, is trying to lay the foundations for a turnaround in a business that spans global equities and listed infrastructure. In January, funds under management stood at about A$36 billion.
Rahmani will join Magellan’s executive team as managing director. She previously was CEO and managing director of Maple-Brown Abbott and has worked in senior roles at Janus Henderson and Macquarie Group Ltd., the statement said. With a view to maintaining stability and continuity, the board asked Formica to remain as executive chairman of Magellan.
(Adds detail on Rahmani’s background from fifth paragraph)
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