Magellan’s Thomas to depart amid global equities simplification
Magellan fund manager Nikki Thomas is to depart next month as the firm reviews its range of global equity funds.
Thomas has spent almost 15 years at the firm, in two chunks, having worked for 11 years as a portfolio manager and the head of research until 2017 before departing to join Alphinity Investment Management. She then returned in 2022 as a global portfolio manager.
However, the firm has now stated that she will depart, and the $426 million High Conviction Trust- Active ETF she managed will be transitioned into the Global Opportunities strategy. Rather than the current 10–20 companies, the holdings will increase to 20–40 under the new strategy, and the management fee will reduce from 1.5 per cent per annum to 0.75 per cent.
The High Conviction strategy aimed to deliver 10 per cent per annum net of fees over the economic cycle, while the Global Opportunities strategy, which was launched in 2022, aims to outperform its benchmark of the MSCI World Net Total Return Index net of fees over periods of three years or longer.
Thomas previously worked on the firm's flagship $7 billion Magellan Global fund alongside Arvid Streimann and Alan Pullen but moved to focus solely on the High Conviction one in February which the firm described at the time as "playing a pivotal role for our existing and prospective clients, particularly in the high net worth channel".
Commenting on the subsequent shake-up of its global equity products, chief executive Sophia Rahmani said Magellan had undertaken a review of its global equity range and opted to simplify this in order to remain agile and responsive to the evolving fund management landscape.
In an ASX statement, the firm said Thomas will remain at the firm for a handover period until 15 September, whereby the portfolio responsibilities will be transferred to Global Opportunities portfolio manager Pullen.
Rahmani said: “In light of this decision, Nikki and Magellan have mutually agreed to part ways and we thank her for her significant contribution to the business.
“Nikki is a recognised and highly respected portfolio manager, has a deep passion for investing, and has delivered strong outcomes for our clients across various strategies. We wish her every success in the future.”
Thomas added: “It is always a true privilege to serve clients in a fiduciary capacity, and I have enjoyed working alongside talented colleagues. I remain a strong supporter of the business and wish Sophia and the team continued success on the path ahead.”
Earlier this week, the firm announced it will rebrand its investment management division as Magellan Investment Partners, retaining its funds, teams, and strategies while adopting a new visual identity. This includes its global equities, listed infrastructure, Airlie Australian equities, and Vinva Investment Management capabilities.
Rahmani said: “These updates to our brand reflect our commitment to building an innovative financial services business that continues to unearth unique opportunities across investment management and specialist financial services.
“The launch of Magellan Investment Partners as the new face of our investment management business allows us to showcase investment solutions we deliver to our clients under a distinct identity, while Magellan Financial Group remains focused on corporate strategy, governance and long-term value creation for shareholders.”
AUTHOR
Laura Dew
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