Magellan has announced the launch of its first two Vinva systemic equity funds: the Vinva Global Equity Fund and the Vinva Australian Equity Fund.
Following its annual general meeting held on Tuesday, Magellan confirmed in an ASX listing that it also plans to launch a 130:30 long-short strategy, the Vinva Australian Alpha Extension Fund, set to be made available in November.
The fund manager revealed in August that it had taken a 29 per cent minority stake in the parent company of Vinva Investment Management. The partnership would also include becoming the distribution partner for Vinva’s equity strategies to clients worldwide, excluding Australian institutional clients.
Since the announcement, Vinva’s funds under management increased from $1.6 billion to $23.1 billion as at 17 October 2024, according to Magellan.
Now, this latest product suite will provide investors with exposure to Vinva’s diversified equity portfolios through an active, systematic approach.
Moreover, the portfolios are designed to be “style neutral”, the firm clarified, with a focus on delivering consistent medium to long-term investment outperformance.
“The launch of funds to the wholesale and retail market is a key milestone in our partnership with Vinva and is indicative of the significant growth potential we see ahead,” said Sophia Rahmani, managing director of Magellan.
“We are bringing Vinva’s investment expertise and track record of performance to more clients through these innovative and high-quality investment products, which are complementary to Magellan’s existing offering.
“We look forward to launching more Vinva Funds and bringing them to market with our high-quality distribution team.”
Vinva’s managing director and chief investment officer, Morry Waked, said: “We are enjoying working with the Magellan team and delighted to bring two Vinva funds to market so quickly. We look forward to a long and successful partnership, leveraging Magellan’s extensive and high-quality distribution network and allowing us to focus on delivering investment returns for clients.”
Magellan shifts focus to offshore markets
In her address to shareholders on Tuesday, Rahmani said the company’s domestic distribution capability is well positioned to adapt and benefit from the changing industry landscape.
The managing director also noted that Magellan now views the US as a “key growth market”, given its size and scale.
“We are well-placed to strategically leverage and capitalise on our existing distribution infrastructure to penetrate this large market across retail and institutional channels,” Rahmani said.
“We are also actively exploring opportunities to deploy capital into expanding the platform’s capabilities further, particularly in the retail market.
“With our strategic partnership with Vinva, we have a significant opportunity to distribute Vinva’s strong performing, innovative systematic equities products to this market and drive growth over time.”
Other key markets for the fund manager included expanding its pre-existing institutional distribution capabilities, which currently spans the UK, Europe, the Middle East and Asia.
“We are looking to continue to invest in our distribution team to cover these markets, as we continue to uncover new distribution opportunities in an increasing number of localities,” Rahmani said.
“This is an area of the business we will continue to invest in.”
