Magellan Asset Management Limited has launched the Vinva Australian Alpha Extension Fund, offering exposure to a 130:30 long-short strategy aimed at delivering enhanced returns through a systematic and diversified approach.
The fund marks the third product that Magellan has brought to market as part of its collaboration with Vinva Investment Management, and follows the successful launch of the Vinva Global Equity Fund and the Vinva Australian Equity Fund in October.
Namely, in August the fund manager revealed that it had taken a 29 per cent minority stake in Vinva’s parent company.
The partnership would also include becoming the distribution partner for Vinva’s equity strategies to clients worldwide, excluding Australian institutional clients. At the time, the two companies confirmed their intention to collaborate on new product initiatives in Australia and globally.
According to Magellan, the third product of the investment suite seeks to generate outperformance regardless of market conditions by capitalising on the potential upside of undervalued stocks and the downside of overvalued stocks.
“The launch of the Vinva Australian Alpha Extension Fund is reflective of the deepening relationship between Vinva and Magellan,” Sophia Rahmani, managing director of Magellan, said.
Rahmani confirmed that the launch marks the first time that Magellan has brought a long-short product to market.
“Our distribution team has witnessed a strong positive response from clients when explaining Vinva’s investment process and differentiation,” she continued.
“Vinva is a great example of the high-calibre teams and opportunities we can attract to our platform and is a key pillar in our diversification strategy, which is gathering momentum.”
Managing director of Vinva, Morry Waked, added: “We are delighted that Magellan has now launched the Vinva Australian Alpha Extension Fund to investors.
“The relationship with Magellan provides retail investors with access to Vinva’s highly-rated equity strategies and allows our team to remain focused on delivering investment returns for our clients.”
At the firm’s annual general meeting on 22 October, Rahmani first announced the launch of the first two funds with Vinva for the Australian market.
“Each of these funds provides retail and wholesale investors access to Vinva’s investment capabilities and are in areas where we see significant client demand,” she said at the time.
Also at its AGM, executive chairman Andrew Formica announced that FUM has stabilised, with outflows slowing quarter by quarter throughout the financial year.
“We have made significant progress in restoring stability to the business for our clients, staff and shareholders,” Formica said.
He added that the firm’s focus remains on sustaining strong performance across all of strategies consistently over the long term.
“This is critical to our ongoing success, adding value to our clients which will, in turn, add value to our shareholders.”
