Ann: Funds Under Management - October 2021, page-53

If you don't value downside protection then it is beyond me why you would ever invest in a manager like Magellan.

It's not even important whether you value downside protection. If you thought you were investing in a fund that targeted the highest net return then I question whether you even looked at Magellan's investment strategy or whether you invested purely based on out-performance.

It's important that institutional investors such as pension funds value downside protection. When you are accumulating wealth as a 30, 40 or 50 year old - the net return is the most important factor. The sequence of returns or volatility of returns doesn't make any difference unless it causes you to sell. However once you start to draw-down on your wealth and rely on investment returns & income to fund your lifestyle (retiree) then these factors make a great deal of difference as to how long your money lasts (sequencing risk).

Remember that the population is ageing with more wealth transitioning into retirement each year. These investors do care about downside protection and that is Magellan's market.