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."
Recommended for you
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.