Magellan’s distribution team has grown to 33 highly qualified and experienced professionals, comprising account managers, and marketing, and performance and reporting personnel. This, in turn, has helped to support ongoing business needs and drive client engagement.
“Over the past year, we have continued to broaden the touchpoints with advisers and SMSF trustees,” Magellan distribution general manager Frank Casarotti says.
“The team has worked closely with our 35-strong investment group to share our insights with clients and advisers.
“Essentially, SMSF advisers are looking for a proven capability from a reputable firm that understands risk. There are many international share funds in the market, but ours focuses on delivering a minimum return over the business cycle while limiting exposure to market shocks.”
Casarotti reveals the investment manager has deepened its representation among adviser model portfolios this year.
“Retail cash flows for the 2016 financial year were $2.3 billion, reflecting continued interest in our funds. Although performance has been challenged, our clients recognise that we look well beyond short-term market noise and have continued to show support,” he says.
Unlike many of its competitors, Magellan takes a long-term investment approach, focused on capital preservation and wealth accumulation, he explains.
This is achieved through a tried-and-tested approach to selecting the right companies and combining economic and market analysis to limit exposure to risks.
“Our business strategy has remained consistent since we started the company and our organisation structure is deliberately designed to ensure we can make iterative changes as we evolve,” he says.
“Business growth can come with its own set of challenges so we periodically review all functional areas to ensure they are adequately supported. We have been particularly cognisant of ensuring we retain the true essence of our culture as the business expands.
“We pay particularly close attention to ensuring that people who join our business are closely aligned with the way we think about the business and possess the right experience and personal qualities that reflect the Magellan brand.”
This year, as in previous years, the firm’s focus has been on meeting its objectives of risk minimisation and generating net returns above 9 per cent over the business cycle, he says.
“The past 12 months have not been easy and performance has been impacted by unprecedented events like the Brexit vote and central bank policies,” he reveals.
“That said, we have kept our commitment of preserving capital in volatile markets – a core philosophical belief that is also a paramount concern for our clients.”
Despite the challenging markets, Magellan continues to witness healthy cash flows from advisers into its products.
“Last year we launched the Magellan Global Equities Fund on the ASX’s Aqua platform,” Casarotti says.
“This fund replicates the Magellan Global Fund investment strategy, but provides advisers with access to an efficient, cost-effective vehicle. We offer both hedged and unhedged versions of the strategy, which has now grown to over $600 million in assets with over 12,000 unitholders – many of these being SMSF investors.”
Winning the award represents a strong endorsement of Magellan’s focus and the value it offers the advised and self-directed market, he notes.
“Winning this accolade reflects the combined efforts across our business, including the people involved in product development, the investment team and our people on the street working closely with advisers,” he says.
“We will continue to focus on delivering the insights and investment outcomes that SMSF investors value.”
