ASX-listed ‘replica’ fund provides new source of FUM: Magellan
Listing a "replica" of its Global Equities strategy on the Australian Securities Exchange (ASX) is giving Magellan access to a wider client-base.
Speaking to Money Management after announcing a $109.3 million net profit for the six months to 31 December 2015, Magellan chief executive, Hamish Douglass, hailed the listing of the Magellan Global Equities Fund on the ASX as a "break-through" success.
Douglass said the fund has attracted support from investors who would not have accessed Magellan's unlisted funds, raising $450 million in funds under management (FUM) since it was listed last year.
"Importantly we're seeing that nearly every stock-broking forum has used that fund, whereas they would never have users our unlisted global equities fund," he said.
"And over 60 per cent of users are self-managed superannuation funds (SMSFs), which has been a key focus of ours… that is a whole part of the market that we never had access to before, and I would argue that most fund managers don't have access to listed open-ended funds, which is kind of a new break-through and we've really been a pioneer of that type of structure and we've been delighted with it."
Douglass said Magellan planned to launch another ASX-listed fund later in 2016, based on the firm's infrastructure strategy.
"Our infrastructure strategy out performed its benchmark by 16 percentage points in the last year, and is right at the top of the peer group over any period against any of the infrastructure managers," he said.
"We believe that infrastructure is really starting to get understood by the adviser community and adding a quoted version of that fund, I think, is fundamental to our distribution strategy."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
