Speaking to InvestorDaily, Magellan chief executive Hamish Douglass said $623 million in mostly self-directed funds has flowed into the ASX-listed versions of the flagship Magellan Global Fund in just over one year.
Magellan launched an ASX-quoted version of the Magellan Global Fund on 2 March 2015, followed by a currency-hedged version of the fund in August 2015.
The update on the ASX-listed funds came as part of Magellan's full-year result, which saw the fund manager report a net profit after tax of $198 million (up 14 per cent on the previous year) and total funds under management (FUM) of $40.5 billion.
Commenting on the ASX-quoted funds, Mr Douglass said they have attracted something of a new self-directed investor base to Magellan.
"This is a completely new product and pull factor that never existed before, and I would say we’re at the tip of the iceberg," Mr Douglass said.
"In terms of that market of people who are self-directed investors, whether it’s self-directed or investment assets, we’re talking tens of billions of dollars [that could be redirected to global equities]," he said.
Because self-directed investors simply do not invest in unlisted funds, Magellan came up with the ASX-quoted fund last year to attract more of the sector to global equities, he added.
Speaking about the retail arm of the Magellan Financial Group, which has a total of $12 billion in FUM, Mr Douglass said the firm has three main "building blocks".
The first is the fund manager's "deep relationships" with 500 non-aligned advice firms.
Second is the strategic relationships with four of the six institutions (CBA/Colonial First State, Westpac/BT, IOOF and AMP) which run replica versions of the Magellan Global Fund with $2 billion in FUM, Mr Douglass said.
Finally, he pointed to the educational material Magellan publishes to inform investors about the benefits of global equities.
Fortnum hires former Centric Wealth CEO
SMSF Association names new chair
Avenir Capital hires investment director
Striking a balance between security and innovation
Backing China in the Year of the Dog
The benefits of good data governance