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Magellan Financial Group

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Magellan Financial Group
Company typePublic
ASX: MFG
ISINAU000000MFG4
IndustryInvestment management
Founded2006
Headquarters
Sydney, New South Wales
,
Australia
Key people
Increase A$238.8 million
(FY2024)[1]
AUMA$39.1 billion
(31 Jan 2025)[2]
Number of employees
109 (30 Jun 2024)[1]
Websitemagellangroup.com.au

Magellan Financial Group is an Australian investment manager focusing on global equities and global listed infrastructure.

MFG funds are available to retail and institutional clients in both Australian Securities Exchange-listed and unlisted forms. As of 31 January 2025, institutional clients held A$23.1 billion of assets under management, composing 59% of total.[2]

Investment

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In addition to its primary funds management business, which constitutes the majority of its operations, the Group's balance sheet includes an Associate Investments portfolio (formerly Principal Investments). This portfolio has traditionally comprised internal holdings in Magellan funds.[3] However, in the second half of 2020, MFG began significantly expanding its Associate Investments to include external holdings, initially making three investments.[4] Timeline of Associate Investments:

  • Sep 2020: A$156 million investment in Barrenjoey Capital Partners, a newly established full service investment bank start-up (40% non-dilutive economic interest, 5% voting interest).
  • Oct 2020: A$20 million investment in FinClear Holdings Limited, a provider of trading technology and infrastructure (16% shareholding).
  • Jan 2021: A$95.4 million investment in fast food restaurant chain Guzman y Gomez (11% shareholding). Sold for A$140 million in May 2022 to a unit of Barrenjoey.[5]
  • Aug 2024: A$138.5 million investment in Vinva Holdings Limited, an investment management firm (29.5% shareholding).[6]

History

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MFG was co-founded in 2006 by Hamish Douglass and Chris Mackay off the back of careers in investment banking. The MFG entity was established through a complex recapitalisation deal where an existing listed vehicle—the underperforming Pengana HedgeFunds Group—was taken control of and renamed,[7] severing formal ties with the previous entity.[8][9] Pengana had been founded in 2003 by Malcolm Turnbull, who was later to become Australian prime minister, and a merchant banking colleague, Russell Pillemar. The Turnbull family retained 20 per cent of the new company after the merger.[8]

Douglass and Mackay used their contacts to raise approximately A$100 million in initial working capital for Magellan and to seed the investment strategies. At the same time, A$378 million[10] was raised to establish the Magellan Flagship Fund in a closed-ended listed investment company structure (ASX code: MFF).[11][12]

In July 2007, MFG launched the Magellan Global Fund and Magellan Infrastructure Fund as unlisted trusts, providing A$15 million and A$5 million of seed capital respectively.[13] As at 31 December 2020, their direct successor funds have increased to about A$15.6 billion and A$2.5 billion respectively, though more broadly the underlying strategies have increased to A$75.1 billion in Global Equities and A$18.2 billion in Global Listed Infrastructure, across a number of investment vehicle variations.[4]

In December 2021, Brett Cairns resigned from his position as CEO.[14] In March 2022, co-founder Hamish Douglass resigned from the Magellan board and co-founder Chris Mackay took up the role of Chairman.[15] David George was appointed CEO in May 2022[16] but resigned in October 2023 to be replaced by Andrew Formica as Executive Chairman on an interim basis as the company searches for a new CEO.[1][17]

References

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  1. ^ a b c "Magellan Financial Group Ltd Annual Report 2024". 15 August 2024.
  2. ^ a b "ASX:MFG - Funds Under Management - January 2025". 6 February 2025.
  3. ^ "Magellan Financial Group Annual Report 2020". 12 August 2020.
  4. ^ a b "Magellan Financial Group Interim Report 2021". 11 February 2021.
  5. ^ "Magellan sells Guzman y Gomez stake to Barrenjoey unit for $140m". Australian Financial Review. Retrieved 2025-02-15.
  6. ^ "ASX:MFG - Strategic Partnership with Vinva Investment Management". 15 August 2024.
  7. ^ "Announcement to ASX: Certificate of Registration on Change of Name" (PDF). 21 November 2006.
  8. ^ a b Murray, Lisa (8 September 2006). "Mates chip in $80m to rescue Turnbulls". Sydney Morning Herald.
  9. ^ "Announcement to ASX: Chairman's Address, Pengana Hedgefunds Limited, Annual General Meeting 17 November 2006" (PDF). 17 November 2006.
  10. ^ "Announcement to ASX: Magellan Flagship Fund Limited Initial Public Offer Closes Oversubscribed" (PDF). 8 December 2006.
  11. ^ "The Long View: Hamish Douglass: On the Hunt for Super-Compounding Stocks" (Podcast). 24 February 2021.
  12. ^ "Magellan Investor Relations Information Pack". September 2019. Retrieved 2021-04-04.
  13. ^ "Magellan Financial Group Annual Report 2007". 18 September 2007.
  14. ^ Battersby, Lucy; Grieve, Charlotte (2021-12-06). "Magellan CEO's abrupt resignation spooks investors". The Sydney Morning Herald. Retrieved 2022-05-22.
  15. ^ Yeates, Clancy. "Hamish Douglass resigns from Magellan board".
  16. ^ Baird, Lucas; Shapiro, Jonathan (2022-05-10). "Magellan appoints David George as CEO". Australian Financial Review. Retrieved 2022-05-22.
  17. ^ "Magellan chairman drops $100b ambitions as CEO departs". Australian Financial Review. Retrieved 2025-02-15.
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