Magellan overhauls global equity funds
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The news: Magellan Financial Group is terminating two of its global equities funds, with both to instead become the Vinva Global Alpha Strategy with Vinva Investment Management appointed as investment manager.
The context: The funds affected are the Magellan Global Fund — Open Class Units — Active ETF and the Magellan Global Fund Hedged, which combined have $5.3 billion in assets under management. Magellan Asset Management (MAML) will remain the responsible entity of the funds and will retain responsibility for distribution.
The funds will be renamed to Vinva Global Alpha Fund — Active ETF.
Magellan said the change in investment strategy was found to be in the best interest of unitholders following a review that took into account client needs, portfolio construction trends, investment performance and fee competitiveness.
Management fees for the funds will drop from 1.35% per annum to 0.89% per annum, and performance fees will no longer be charged.
Magellan said it expects to realise direct cost savings of about $7 million per annum due to a reduction in size of the global equities team and savings in fund administration costs.
The changes are expected to be implemented in early June 2026, subject to ASX approvals.
The fund manager also announced that its $94 million listed Magellan Global Equities fund (currency hedged) fund will also be closed after determining it lacked sufficient market demand to support future growth combined with low average account balances which resulted in limited overall scale. The fund’s last day of trade is expected to be 5 June.
In November, Magellan’s head of global equities Arvid Streimann resigned, following an investigation into an alleged relationship with a junior employee.
Magellan said the Magellan Global Opportunities Strategy and the Magellan Global Opportunities funds remained unchanged with Alan Pullen as portfolio manager and Ryan Joyce as deputy portfolio manager.
What they said: Magellan chief executive Sophia Rahmani said: “We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering”.
