Magellan drills down on distribution amid brand transformation
Magellan has shared priorities for how the firm is transitioning away from a traditional asset manager with a focus on distribution and strategic partnerships.
Speaking at the firm’s annual general meeting on 22 October, CEO Sophia Rahmani said the firm is actively working on diversifying revenue streams, expanding its product range and positioning for long-term growth.
One specific focus is the push on distribution with active fund managers “likely to remain sub-scale” unless they can get their distribution practice right.
“With fewer but larger buyers, increasing bargaining power concentrated in institutional hands, and more gatekeepers across retail and wholesale segments, the ability to build and maintain relationships at scale is now a decisive factor in determining which investment managers thrive,” Rahmani said.
“For those with limited reach, however strong their investment credentials are, the risk is to remain subscale or to be left behind in a market that demands client relationships, access and influence.”
It said it will leverage the firm’s existing global distribution platform, not only in Australia, but also to reach clients in Asia Pacific, North America, UK, and EMEA.
Many fund managers have been actively expanding their distribution teams this year, especially among those who work with financial advisers, including GCQ Funds Management, Allspring Global Investments, Talaria, and Watershed Funds Management.
The annual Funds Distribution Salary Guide and Trends from Kaizen Recruitment found wholesale distribution accounted for 72 per cent of market hiring activity compared to around 40 per cent for both institutional and retail distribution.
As well as this, Magellan is looking to expand its strategic partnerships, which it already holds with Vinva Investment Management, Barrenjoey, and FinClear. In its full-year results, it said income from strategic partnerships tripled from $10.3 million to $31.1 million.
With the Vinva deal, which was announced in August 2024, this sees Magellan distribute Vinva’s products and investment strategies through its global distribution team as part of an exclusive distribution agreement. Since then, four systematic equity funds have been launched. It established a global distribution arrangement, and a $985 million institutional mandate has been secured.
“Vinva has a unique and scalable investment platform for growth and had a very strong year of investment performance and client inflows across all key strategies. These results continue to support the rationale we outlined when we made our investment and we look forward to continuing to building further momentum in our distribution partnership with the Vinva team,” said Rahmani.
“We pursue fewer, deeper partnerships – providing capital and access to our institutional-grade platform – while respecting autonomy and creating mutual benefit. This approach allows our partners to grow without losing what makes them successful and in turn strengthens our business.”
AUTHOR
Laura Dew
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