Will Magellan’s domestic bet pay off?
Magellan’s focus on international equities and infrastructure has seen them well-rewarded with strong returns, but yesterday they announced that they were making a foray in the Australian Equities space.
Magellan yesterday announced that they had acquired Airlie Funds Management, signalling that they would now focus on offerings at home as well as abroad.
With foreign equities, especially in the United States, largely outperforming their Australian counterparts of late, it is unclear whether Magellan’s experiment would see them as rewarded as they have been from their globally focused funds.
The fund manager’s accounts in the global equities space have delivered stellar performances over the last year. The Magellan Global Equities (Currency Hedged) (Managed), Global and Global Hedged funds all recorded returns in excess of approximately 20 per cent in the year to 31 January, 2018.
The Magellan High Conviction was the best performer of the manager’s funds in the sector, delivering returns of 26.34 per cent, outstripping the Global Equities sector average of 18.99 per cent.
Their performances of their global infrastructure have also been impressive, with returns ranging from 15.53 to 17.58 per cent.
It would be interesting to see how Hamish Douglass’ decision to expand into Australian stocks pans out, and whether Magellan delivers returns at home as impressive as they have managed with their investments abroad.
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