MFG Fair Value, page-15

Magellan fund fee pressure mounts amid client crisis

https://www.a f r.com/companies/financial-services/magellan-fund-fee-pressure-mounts-amid-client-crisis-20211221-p59jc6

Another wealth adviser, who has about $50 million of his clients’ money invested with Magellan, said it was “inevitable that consumerism will drive down fees at Magellan”, which are higher than those of its competitors such as Platinum Asset Management and recently listed GQG Partners.

But another Magellan client and private wealth firm CEO said his client holdings in Magellan products were on shaky ground. “Charging what they charge demands constant out-performance, so that is more and more difficult to justify,” the CEO said. “I would be very surprised if in a year’s time they hadn’t moved to meet the market.”

“We also think this puts pressure on MFG’s retail base fees, which are some of the highest among peers,”