Zenith client release – Magellan Asset Management
Update on Magellan products
Following our decision to place Magellan Asset Management’s (Magellan) global equities suite of products under review, Zenith has met with key executives and senior investment personnel to discuss the implications of Hamish Douglass’ indefinite medical leave of absence.
Chris Mackay, co-founder of Magellan, will oversee the management of Magellan’s retail and institutional global equities mandates. Mackay will co-manage the following products with Nikki Thomas and Arvid Streimann:
- Magellan Global Equities Fund (Currency Hedged) (ASX: MHG)
- Magellan Global Fund (Hedged) (APIR: MGE0007AU)
- Magellan Global Fund (Open Class) (APIR: MGE0001AU)
- Magellan Global Fund (Open Class) (Quoted) (ASX: MGOC)
- Magellan Global Fund Closed Class (ASX: MGF)
Thomas will be returning after having previously worked as an analyst, portfolio manager and head of research at Magellan from 2007 until 2017, when she left to work as portfolio manager of the Alphinity Global Equity Fund.
Streimann joined Magellan in 2014 and was appointed head of macro research at Magellan in 2017. Streimann has been co-portfolio manager of the global equities strategies since 2020.
In addition, Mackay will assume portfolio management responsibilities of the following products with Chris Wheldon:
- Magellan High Conviction Fund – Class A (APIR: MGE0005AU)
- Magellan High Conviction Fund – Class B (APIR: MGE9885AU)
- Magellan High Conviction Trust (ASX: MHHT)
Wheldon has over 19 years investment experience, having joined Magellan in 2007. He has been a portfolio manager at Magellan since 2018.
The portfolio management responsibilities of the following products remain unchanged:
- Magellan Sustainable Fund (APIR: MGE4669AU)
- Magellan Sustainable Fund (Quoted) (ASX: MSUF)
- MFG Core ESG Fund (APIR: MGE8722AU)
- MFG Core ESG Fund (Quoted) (ASX: MCSE)
- MFG Core International Fund (APIR: MGE3851AU)
- MFG Core International Fund (Quoted) (ASX: MCSG)
As it relates to Magellan’s staff retention mechanisms which have been reported in the press of late, including staff equity plans and loan initiatives, Zenith understands that these are currently under review. However, no immediate changes have been communicated to date.
Zenith believes Mackay is an impressive investor who is supported by a well-resourced and experienced investment team, as such we retain comfort that Mackay is appropriately suited to take on the aforementioned roles. Zenith also maintains confidence in Thomas, Streimann and Wheldon as portfolio managers, having met with and reviewed each of them on several occasions.
However, given our high regard for Douglass, we consider his leave of absence to be a material loss for Magellan’s global equities suite and overall business.
In addition, we will closely monitor the actions and potential movements of the executive and investment team going forward. Specifically, we will focus on the appointment of the CEO, staff equity plans and initiatives.
Whilst business stability continues to be an area of focus, Magellan remains a highly profitable business with $A 93.5 billion in FUM as at 31 January 2022.
Although Zenith retains strong conviction in the underlying products, we have prudently made the following ratings changes:
|Name||APIR||Previous rating||New rating||RI classification|
|Magellan Global Equities Fund (Currency Hedged)||ASX:MHG||Highly Recommended||Recommended||Integrated|
|Magellan Global Fund (Hedged)||MGE0007AU||Highly Recommended||Recommended||Integrated|
|Magellan Global Fund (Open Class)||MGE0001AU||Highly Recommended||Recommended||Integrated|
|Magellan Global Fund (Open Class) (Quoted)||ASX:MGOC||Highly Recommended||Recommended||Integrated|
|Magellan Global Fund Closed Class||ASX:MGF||Highly Recommended||Recommended||Integrated|
|Magellan High Conviction Fund – Class A||MGE0005AU||Recommended||Recommended||Integrated|
|Magellan High Conviction Fund – Class B||MGE9885AU||Recommended||Recommended||Integrated|
|Magellan High Conviction Trust||ASX:MHHT||Recommended||Recommended||Integrated|
|Magellan Sustainable Fund||MGE4669AU||Recommended||Recommended||Integrated|
|Magellan Sustainable Fund (Quoted)||CXA:MSUF||Recommended||Recommended||Integrated|
|MFG Core ESG Fund||MGE8722AU||Recommended||Recommended||Integrated|
|MFG Core ESG Fund (Quoted)||CXA:MCSE||Recommended||Recommended||Integrated|
|MFG Core International Fund||MGE3851AU||Recommended||Recommended||Integrated|
|MFG Core International Fund (Quoted)||CXA:MCSG||Recommended||Recommended||Integrated|
If you have any questions or would like further information about this release, please call Greg Ryan on 0419 144 155.