Magellan Financial Group Ltd (ASX:MFG)'s investors have welcomed new chief executive Sophia Rahmani’s dividend initiatives, as the funds manager posted a 5% rise in operating profit to $159.7 million.
Rahmani, who stepped into the role in March, announced both a higher final dividend and a special dividend, helping lift shares 7% to $11.37 in early trade.
The company’s statutory net profit fell to $165 million, broadly in line with consensus. Average funds under management rose 4% to $38.4 billion, while total assets under management climbed 8% to $39.6 billion, supported by stronger markets and demand for new products. However, investment management revenue declined 12% to $245.7 million.
Operating earnings per share increased 7% to 89.8 cents. A final dividend of 25.9 cents per share will be paid on 9 September, alongside a special dividend of 21 cents per share. The board said the additional payment reflects “the material increase in non-investment management earnings, the group’s strong capital position and alignment with the new FY26 dividend policy of paying at least 80% of operating profit.”