Funds manager Magellan Financial Group (ASX: MFG) has officially anointed Sophia Rahmani as its new CEO, less than a year after the seasoned executive joined the group.

The former head of Sydney-based boutique fund manager Maple-Brown Abbott joined the company in May last year as CEO of Magellan’s main operating subsidiary, Magellan Asset Management.

Her appointment was part of a planned 12-month succession plan at Magellan following the shock departure of former CEO David Georgein 2023.

Since then, chairman Andrew Formica has led the company in an executive capacity amid a challenging time for Magellan as it seeks to reverse a massive fall in funds under management in recent years.

Formica says Rahmani’s “outstanding leadership and strategic insight” have made a significant contribution to the company since her appointment last year, including her role in Magellan acquiring a 29.5 per cent stake in fellow Sydney-based investment firm Vinva for $138.5 million.

“Sophia has continued to restore stability and build trust with our clients and our team and was instrumental in establishing our strategic partnership with Vinva,” says Formica.

“As I transition executive leadership to Sophia, the board remains confident that we have the right elements in place to continue to strengthen and grow.

“Together with the other recently announced executive appointments, we have a leadership team of exceptional quality, and I look forward to working with Sophia and her team in our next phase of growth.”

Rahmani will officially take the reins at Magellan on 3 March 2025, although she will still remain CEO of Magellan Asset Management.

“This is an exciting time for the company, we have a strong platform for growth, with an exceptionally talented team, enduring client relationships and innovative, high quality strategic partnerships,” says Rahmani.

“I look forward to continuing to work with our team, clients and strategic partners to build on this foundation. Our focus will remain on providing exceptional client service, fostering a culture of excellence and driving long-term success.”

The appointment was accompanied by Magellan announcing a 10 per cent fall in net profit after tax to $94 million for the first half of FY25.

Assets under management were up marginally, by 3 per cent, to $38.6 billion, although the group managed a significant increase in performance fees to $6.1 million – up from about $90,000 a year earlier.

Formica says the first half of the current financial year saw “marked progress” in stabilising the business.

“The last six months have seen MFG continue to foster strong client relationships and innovate its product offering,” he says.

“Our distribution platform remains a competitive strength, and we have bolstered our global capacity with our presence in North America and now the UK, covering EMEA.”

Since securing its partnership with Vinva in August last year, Magellan has launched three new systematic equity funds for the Australian market while progressing plans for a fourth.

“Today we stand as a trusted financial group in the dynamic Australian financial services marketplace, known for being a valued partner for our clients, built on our legacy of providing differentiated high quality investment opportunities to our clients,” says Formica.

“We intend to continue to pursue strategic growth opportunities and partnerships that add value to MFG, its clients and its shareholders.

“We know that our success is dependent on the trust placed in us by our clients, a trust we do not take lightly.

“Looking ahead, we are confident in our ability to rebuild and grow. With a new executive leadership structure in place and a clear focus on our strategic priorities, we are well-positioned to capitalise on opportunities and deliver sustainable growth.”

Shareholders today pushed back on the latest earnings result by marking Magellan’s shares down 10 per cent to $9.09 at 11.05am (AEDT).

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