Magellan confirms new group CEO & CFO, concluding leadership transition

Fund manager Magellan Financial has announced the formal appointments of Sophia Rahmani as group chief executive and managing director and Dean McGuire as chief financial officer (CFO), concluding the firm’s 12-month leadership transition process.

The appointments, announced to the Australian Securities Exchange (ASX) this morning, follow the conclusion of a previously announced transitional leadership arrangement, with Rahmani provisionally named as succeeding chief executive in February 2024.

As part of the arrangement, Magellan executive chair Andrew Formica will revert, as planned, to non-executive chair from 3 March 2025, concluding a nearly year-and-a-half stint overseeing executive functions.

Formica, formerly CEO of Janus Henderson, took on the executive chair role following the swift departure of former CEO David George.

At the time of announcing the transitional arrangement last February, Formica said the troubled fund manager had turned a corner – as investor redemptions stripped more than half its funds under management in under two years (from a peak of $100 billion in 2020 to under $50 billion by 2022) – with tangible progress delivered on the firm’s strategic agenda.

Newly appointed CEO Rahmani joined Magellan in May 2024 as managing director of the firm’s main operating subsidiary, Magellan Asset Management – a role she will retain as group CEO.

Rahmani was formerly chief executive and managing director of Maple-Brown Abbott for more than four years, and previously held senior positions at Janus Henderson and Macquarie Group.

Formica said he was “delighted” to confirm Rahmani as the firm’s next CEO, adding that “her outstanding leadership and strategic insight have already made a significant contribution” to the firm.

“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.”

Formica added: “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 for her part said she was “honoured to take on the role of CEO”.

“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.

“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.”

Joining Rahmini on Magellan’s refreshed executive line-up is newly appointed CFO Dean McGuire.

McGuire joins from property management group GPT, serving most recently as interim CFO and prior to this as deputy CFO over a 14-year tenure with the firm.

Rahmani hailed McGuire’s “demonstrated financial capability and depth of experience across corporate development, capital management and strategic planning”.

Michelle Mutchnik, Magellan’s interim CFO since January, will resume her duties as deputy CFO following McGuire’s appointment.

Magellan’s share price dropped by more than 10% (falling just under $9 per share) following news of the executive appointments this morning.