Magellan awards $5.3bn global equities mandate

Magellan Financial Group has announced proposed changes to the investment management arrangements for its global equities strategy.

The Magellan Global Fund - Open Class Units - Active ETF (ASX: MGOC) and the Magellan Global Fund Hedged investment strategy will be changed to the Vinva Global Alpha Strategy, and Vinva Investment Management will be appointed as investment manager for the funds.

The funds have approximately $5.3 billion in assets under management, as at April 30.

Magellan will remain the responsibility entity for the funds and retain responsibility for distribution.

"Today's announcement reflects our commitment to putting clients first and our insight into client needs today and in the future. We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering," Magellan chief executive Sophia Rahmani said.

Additionally, Magellan said it intends to close the Magellan Global Equities Fund (Currency Hedged) (ASX: MHG). The fund had around $94 million AUM, as at April 30.

Magellan said the investment strategy and philosophy for the Magellan Global Opportunities Strategy and Magellan Global Opportunities funds remains unchanged, with Alan Pullen continuing as portfolio manager and Ryan Joyce as deputy portfolio manager.

"These changes reflect Magellan's commitment to deliver strong future investment performance outcomes for clients and to align the funds with evolving investor preferences," Magellan said.

"After a comprehensive review, the board of MAML determined that the change in investment strategy and appointment of Vinva as investment manager for the funds is in the best interests of unitholders, taking into account evolving client needs, portfolio construction trends, investment performance and fee competitiveness."

As a result of the change, effective today, Magellan will reduce the management fees for the funds from 1.35% p.a. to 0.89% p.a., and performance fees will no longer be charged.

"This reduction in the headline fee is a key component of enhancing each fund's value proposition and reflects Magellan's focus on improved outcomes for clients," Magellan said.

Magellan has an existing strategic distribution partnership with Vinva, which includes a 28% minority stake in Vinva's parent entity.

As at April 30, Magellan managed mandates of around $3.7 billion in similar strategies to the funds and said it is working through the impact of the changes with those clients.

The change of investment strategy and appointment of Vinva as the investment manager of the funds is expected to be implemented in early June 2026, subject to ASX approvals.