Magellan debuts first long-short product
Magellan has announced the launch of the Vinva Australian Alpha Extension Fund, the third fund arising from its strategic partnership with Vinva Investment Management.
The firm first announced it would be acquiring a 29.5 per cent stake in parent company Vinva Holdings in its FY24 results in August.
In October, it launched its first two funds with Vinva for the Australian market, namely the Vinva Australian Equity Fund and the Vinva Global Equity Fund, both of which are long-only systematic equity strategies.
Magellan has now announced the launch of the Vinva Australian Alpha Extension Fund, a 130:30 long-short strategy designed to provide investors with enhanced returns through a systematic and diversified approach.
This marks the first time Magellan has brought a long-short product to market, according to managing director Sophia Rahmani.
“The launch of the Vinva Australian Alpha Extension Fund is reflective of the deepening relationship between Vinva and Magellan. It’s the first time we’ve brought a long-short product to market, and our distribution team has witnessed a strong positive response from clients when explaining Vinva’s investment process and differentiation,” she said.
“Vinva is a great example of the high-calibre teams and opportunities we can attract to our platform and is a key pillar in our diversification strategy, which is gathering momentum.”
The new fund provides exposure to Vinva’s expertise in active, systematic equity investing and aims to generate outperformance, regardless of market conditions, by capitalising on the potential upside of undervalued stocks and the downside of overvalued stocks.
“We are delighted that Magellan has now launched the Vinva Australian Alpha Extension Fund to investors,” said Morry Waked, managing director and CIO of Vinva.
“The relationship with Magellan provides retail investors with access to Vinva’s highly rated equity strategies and allows our team to remain focused on delivering investment returns for our clients.”
Speaking on a shareholder webinar in August following the strategic stake, Magellan executive chair Andrew Formica observed “significant capacity” for Vinva to grow beyond its current $22 billion in assets under management over the next decade.
The fund manager, founded in 2010, manages active systematic equity strategies across Australian and global equity markets.
“There is significant capacity for Vinva, that’s a real attraction for us, it could be significantly larger than where they are today,” Formica said.
“That’s a real highlight of this opportunity for us; the process is so sound and the capacity constraints are so small. [It’s a] huge opportunity for us as a business.”
AUTHOR
Rhea Nath
Recommended for you
BlackRock, in collaboration with iCapital and GeoWealth, has unveiled a model portfolio that delivers access to both private and public market assets in a single account, following adviser demand.
Magellan has confirmed the new leadership of its active infrastructure ETF once head of investment, Gerald Stack, exits in July.
Vanguard has indicated it is actively trying to meet the demand for international ETFs with its next ETF launches sitting in this space.
Dubious marketing strategies involving financial advisers are among reasons that research house SQM Research has put the private credit space on alert.
