A number of clients have been asking this in recent times, following Magellan’s high profile advertising campaigns. We provide some more background and our views.
In case you missed it, Magellan was the naming rights sponsor for the Ashes test cricket. Apart from their constant on field exposure during the cricket itself, Magellan has been getting a lot of brandname mentions in cricket related media reports, as well as running a lot of associated ads.
This followed on from a lot of exposure in the pop finance media during 2017, when Magellan launched a new listed fund.
Magellan is an Australian fund manager that specialises in global investing. They have a number of different funds with varying focus and structures, but all invest internationally rather than in Australia. From a tax and regulatory perspective they are Australian based funds, which removes much of the complexity for Australians wanting to invest internationally.
A key theme of Magellan advertising is that most of the consumer brands and innovative technologies Australians use, are provided by international companies. Yet the portfolios of Australian investors are heavily weighted to Australian companies. Australian investors are potentially missing out on the enormous range of investment opportunities in the rest of the world.
At ICT Wealth we are strong advocates for international diversification in investment portfolios. Most of our portfolio recommendations include an allocation to international shares. But there are many different ways to achieve this international exposure. Magellan is just one.
Most Magellan funds are well rated by the independent research consultants we use, and we do include selected Magellan funds in some of our client portfolios. Due to their distinctive style and relatively high cost, we typically combine Magellan with other international share funds of contrasting styles and lower cost. However it is not the right option in every situation, and any recommendation we make is always dependent on client specific circumstances.
If you are interested in further investigating Magellan as an option for your investments or super, please get in touch.