Magellan Financial Group

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Magellan Financial Group
TypePublic
ASX: MFG
ISINAU000000MFG4
IndustryInvestment management
Founded2006
Headquarters
Sydney, New South Wales
,
Australia
Key people

  • (Chairman and CIO)
  • Brett Cairns
    (CEO)
AUMIncrease A$101.3 billion
(31 Dec 2020)[1]
Number of employees
133 (31 Dec 2020)[1]
Websitemagellangroup.com.au

Magellan Financial Group (MFG) is an Australian investment manager focusing on global equities and global listed infrastructure.

MFG funds are available to retail and institutional clients in both Australian Securities Exchange-listed and unlisted forms. As of 31 December 2020, institutional clients held A$73.9 billion of assets under management, composing 73% of total.[1]

Investment[]

Alongside the dominant funds management business segment where the majority of operations are concentrated, the Group balance sheet includes a Principal Investments portfolio that has historically been composed of internal holdings in Magellan funds.[2]

In the second half of 2020, MFG commenced significantly expanding its Principal Investments segment to include an external portfolio, initially undertaking three investments:[1]

  • Sep 2020: A$156 million investment in Barrenjoey Capital Partners, a newly established full service investment bank start-up (40% non-dilutive economic interest, 5% voting interest);
  • Oct 2020: A$20 million investment in FinClear Holdings Limited, a provider of trading technology and infrastructure (16% shareholding);
  • Jan 2021: A$95.4 million investment in fast food restaurant chain Guzman y Gomez (11% shareholding).

History[]

MFG was co-founded in 2006 by Hamish Douglass and Chris Mackay off the back of careers in investment banking. The MFG entity was established through a complex recapitalisation deal where an existing listed vehicle—the underperforming Pengana HedgeFunds Group—was taken control of and renamed,[3] severing formal ties with the previous entity.[4][5] Pengana had been founded in 2003 by Malcolm Turnbull, who was later to become Australian prime minister, and a merchant banking colleague, Russell Pillemar. The Turnbull family retained 20 per cent of the new company after the merger.[4]

Douglass and Mackay used their contacts to raise approximately A$100 million in initial working capital for Magellan and to seed the investment strategies. At the same time A$378 million[6] was raised to establish the Magellan Flagship Fund in a closed-ended listed investment company structure (ASX code: MFF).[7][8]

In July 2007, MFG launched the Magellan Global Fund and Magellan Infrastructure Fund as unlisted trusts, providing A$15 million and A$5 million of seed capital respectively.[9] As at 31 December 2020, their direct successor funds have increased to about A$15.6 billion and A$2.5 billion respectively, though more broadly the underlying strategies have increased to A$75.1 billion in Global Equities and A$18.2 billion in Global Listed Infrastructure, across a number of investment vehicle variations.[1]

References[]

  1. ^ a b c d e "Magellan Financial Group Interim Report 2021". 11 February 2021.
  2. ^ "Magellan Financial Group Annual Report 2020". 12 August 2020.
  3. ^ "Announcement to ASX: Certificate of Registration on Change of Name" (PDF). 21 November 2006.
  4. ^ a b Murray, Lisa (8 September 2006). "Mates chip in $80m to rescue Turnbulls". Sydney Morning Herald.
  5. ^ "Announcement to ASX: Chairman's Address, Pengana Hedgefunds Limited, Annual General Meeting 17 November 2006" (PDF). 17 November 2006.
  6. ^ "Announcement to ASX: Magellan Flagship Fund Limited Initial Public Offer Closes Oversubscribed" (PDF). 8 December 2006.
  7. ^ "The Long View: Hamish Douglass: On the Hunt for Super-Compounding Stocks" (Podcast). 24 February 2021.
  8. ^ "Magellan Investor Relations Information Pack". September 2019. Retrieved 2021-04-04.
  9. ^ "Magellan Financial Group Annual Report 2007". 18 September 2007.

External links[]

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