Ann: Funds Under Management - November 2021, page-124

in the news today...

Multiple financial advisers told AFR Weekend they had advised clients to pull funds out of Magellan products, while others were still considering doing so. All asked to remain anonymous to avoid lengthy phone calls or visits from Magellan’s business development managers.

“We recommend you sell down your entire holdings of the Magellan Global Fund” one firm, which had been a supporter of Magellan’s for more than a decade, wrote to clients in October.

“This is due to significant underperformance with the benchmark over the past year, and a reduced conviction in their team.”

Another said the duty to act in the best interests of clients made it difficult, if not impossible, to continue backing an underperforming manager indefinitely, even if you thought their explanations had some merit.