Magellan’s priorities as it targets $100b FUM
Improved fund performance and potential acquisitions are among priorities for Magellan as it targets achieving more than $100 billion in funds under management in the next five years.
David George, who joined in July as chief executive and was appointed chief investment officer this week, said he wanted Magellan to be a fund manager of scale with over $100 billion in funds under management, a diversified product mix and to be the partner of choice for Australian wealth managers.
A key issue recently had been the underperformance of the Magellan Global fund and George said he was taking action on this.
“Performance in our global equities strategies in the last two years has not been to our normal high standard. This is where I am taking action.
“We will leverage Gerald Stack’s ability to manage and develop great investors. We are excited to bring his skill set to the global equities analyst team with a view to optimising analyst engagement, but also the engagement between the analysts and our portfolio managers.”
Former Global fund manager, Hamish Douglass, had now taken a consultancy role at the firm following a temporary leave of absence and this would be overseen by George.
Chair Hamish McLennan said: “This consulting role includes providing investment insights, particularly on macroeconomic and geopolitical issues, to the global equities team with some limited institutional client engagement. David will oversee this engagement and ensure that it supports investment and client outcomes and continues to benefit Magellan”.
Meanwhile, George hinted at potential acquisitions to grow beyond its existing offerings, similar to how it acquired Airlie in 2018.
“We will be looking for opportunities to invest in experienced, quality teams and capabilities in equities and we believe we can replicate the integration success of Airlie.
“As time moves forward and we are again delivering client outcomes through performance, we will look toward areas like private markets as allocation to this segment is growing in our clients’ portfolios. Where we can and where it makes sense, we will grow alongside their needs. We will be disciplined in our approach to this. Any investment or acquisition we make in time will be strategic and scalable, fit alongside our existing funds management business and deliver synergies in order to drive shareholder value.”
AUTHOR
Laura Dew
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
Add new comment