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Magellan considers SMAs

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By Vishal Teckchandani
  •  
3 minute read

Magellan is considering offering its funds through a separately or individually managed accounts format.

Magellan Financial Group chief executive Hamish Douglass said the firm is considering offering its products in a separately managed account (SMA) or individually managed account (IMA) format.

"Watch this space, I would say. The IMAs and SMAs are more problematic in terms of getting an effective administration solution," he said.

"It is relatively easy to just put the fund in but to put in the underlying securities, we are talking to people around how they could provide an effective administration solution on that.

"So if that's solved then it's certainly something that is possible, something we would be interested in."

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The listed company's funds include the Magellan Global Fund, Magellan Infrastructure Fund and the listed Magellan Flagship Fund.

Douglass said the global fund and infrastructure fund recently raised cash holdings to 12 per cent and 17.5 per cent, respectively, from being "virtually" fully invested as Europe's debt crisis roiled markets in the past week.

He said he hoped the European Union's pledge to create a $1 trillion stablisation fund would be effective.

"Ultimately, the devil is going to be in the detail," Douglass said.

"But certainly the intention behind it and the size of it is about the right number in my view."

Magellan this month said its funds under management had reached $1.09 billion as at 30 April, compared with $939 million in the previous month.