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Magellan Financial Group

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Magellan Financial Group
Company typePublic
ASX: MFG
ISINAU000000MFG4
IndustryInvestment management
Founded2006
Headquarters
Sydney, New South Wales
,
Australia
Key people
AUMIncrease A$101.3 billion
(31 Dec 2020)[1]
Number of employees
133 (31 Dec 2020)[1]
Websitemagellangroup.com.au

Magellan Financial Group 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

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Alongside the dominant funds management business segment where the majority of operations are concentrated on 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

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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]

In December 2021, Brett Cairns resigned from his position as CEO.[10] In March 2022, co-founder Hamish Douglass resigned from the Magellan board and co-founder Chris Mackay took up the role of Chairman.[11] David George was appointed CEO in May 2022.[12]

References

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  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.
  10. ^ Battersby, Lucy; Grieve, Charlotte (2021-12-06). "Magellan CEO's abrupt resignation spooks investors". The Sydney Morning Herald. Retrieved 2022-05-22.
  11. ^ Yeates, Clancy. "Hamish Douglass resigns from Magellan board".
  12. ^ Baird, Lucas; Shapiro, Jonathan (2022-05-10). "Magellan appoints David George as CEO". Australian Financial Review. Retrieved 2022-05-22.
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