Magellan shuts down Vinva Global Equity Fund

Magellan Asset Management is shuttering the Vinva Global Equity Fund, an active systematic strategy, two years after it was brought to market.

Reaching $165.3 million in assets under management at the end of August, Magellan, as responsible entity, told investors the fund has not reached sufficient scale to be sustainable over the longer term and has decided to terminate it in investors' best interests.

Magellan launched the fund in October 2024 in line with the Vinva Australian Equity Fund after taking a stake in Vinva Investment Management.

The fund aimed to outperform the MSCI All Country World ex Australia ex Tobacco ex Controversial Weapons Index (AUD), beating it since inception by 3.4% p.a.

Its top holdings included Nvidia, Apple, Microsoft, Broadcom, TSMC and Meta.

The fund's termination date is set to be on or about October 12.

In June, Vinva became the investment manager for the Magellan Global Fund - Open Class Units - Active ETF (ASX: MGOC) and Magellan Global Fund Hedged investment strategy.

In the same month, the Australian Competition and Consumer Commission (ACCC) also greenlit the merger between Magellan Financial Group (MFG) and Barrenjoey Capital Partners, in a deal with an implied valuation of $1.6 billion.

MFG currently has a 28% ownership in quantitative investment manager Vinva, which has more than $65 billion in assets under management.

MFG first took a stake of 29.5% in Vinva in August 2024, which at the time was a $22 billion equities boutique run by former Barclays Global Investors global active equities investment lead Morry Waked.

In the final quarter of the 2026 financial year, MFG reported outflows of $2 billion and $1.3 billion of retail mandates that were managed by MFG transitioned to Vinva.

MFG's FY26 revenue therefore reduced by about $3.6 million following these changes but expects to book $7 million in cost savings in the following financial year.