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 played an important role for the company and its senior management team since joining Magellan in June 2013.

“In particular, Kirsten provided exceptional leadership and stability when she stepped into the role of Interim CEO from December 2021.” until July 2022 The board is grateful to Kirsten for her immeasurable contributions to Magellan over many years and we wish her the best in her future endeavors,” added Formica.

Morton is expected to continue in her role as chief operating officer and chief financial officer until the end of 2024, with the company now poised to begin a search process for her replacement.

Magellan has undergone significant change in recent years.

At the company's recent 2024 Annual General Meeting. Formica's executive chairman announced that the firm's FUM – which has been on a downward spiral since Hamish Douglas stepped down from portfolio management duties in February 2022. – has stabilized.

As of September 30, 2024 Magellan's funds under management (FUM) were $38 billion, higher than the average for the 2023-24 financial year. of $36.8 billion.

In February, the firm announced several changes, including the appointment of Sofia Rahmani to the role of managing director of Magellan's main operating subsidiary, Magellan Asset Management Limited, effective May 2024, with plans to appoint her as Magellan's CEO in within 12 months. Magellan confirmed at the time that once Rahmani moves to CEO, Formica will revert to a non-executive chairman.

Also at the time, Formica said he would stay on as executive chairman for an interim period to ensure the firm maintains continuity and stability, focusing his attention on the strategic development of Magellan, while Rahmani focuses on the firm's asset management business .

"With a new executive leadership structure in place and a number of legacy issues behind us, including after dealing with the employee stock purchase plan loans and the uncertainty surrounding our Magellan Global Fund (Closed-End Class) (MGF), I am confident that the business is in a strong position for recovery and growth,” Formica said.

"I am encouraged by the progress we are making and confident that our strong fundamentals position us well to deliver positive results for our customers and shareholders."

Rahmani's appointment to replace David George, who had served as chief executive and managing director for just 15 months, was widely seen as a move to revamp the fund manager's image after years of turbulence.

Morningstar said in February this year that while Rahmani's appointment "is an encouraging step forward for the group following a challenging period under David George", it would not affect its ratings for the firm's fund range.

"There have been significant changes in responsibilities since Hamish Douglas stepped down from his portfolio management duties in February 2022," Morningstar said.

In contrast to George's tenure, the rating firm described Formica's July 2023 appointment. as one that brought "much-needed fund management experience to the board".