Investors in Magellan have focused on fund flows, brushing aside concerns over short term performance

James Marlay

Livewire Markets

Investors in Magellan have focused on fund flows, brushing aside concerns over short term performance. MFG shares are up 6% at the time of writing following a bullish briefing by CEO Hamish Douglass. The 12 month performance of the flagship Magellan Global Fund when benchmarked against the world MSCI index is not flattering (slide 11). However, by their own standards and importantly those of their investors Douglass says they aren't concerned. However, the story today was about distribution and building a world class business. MFG already have an impressive presence in the IFA market (i.e. not aligned with the banks). Today, Douglass said they have attractive deals in place with 4 out of the 5 major institutions i.e. The Banks + AMP. Investors are now looking beyond the short term performance as MFG articulates a long term business strategy. Expect to see continued flows as this strategy plays out. (VIEW LINK)

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James Marlay
Co Founder
Livewire Markets

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