Our Mission
To help our clients and their Financial Advisers shine a light into the dark corners of the DFM world, where fees can be high, but performance often disappointing.
Our Approach
As our name Magellan suggests, we are global explorers, although these days, spend our time navigating the increasingly treacherous waters of global investment markets.
By design, our methods and process is also global and built upon a three-stage, data-driven investment approach that spans the full range of asset classes our clients may wish to use. But, as markets ebb and flow and investment conditions change, so our approach also has flexibility built into it, allowing us to adapt and remain agile as markets move or trend.
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Stage 1 - MRI Scan
We start with our Magellan (MRI) Scan, our proprietary, in-house, market and sector performance analysis screen.
MRI sits firmly at the base of our ETF monitoring pyramid and underpins much of what we do and how our processes are built. Part algorithm, part human and occasionally part light-bulb moment, we can quickly pull-out trends within the factors, sectors and funds we follow.
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MRI provides us with some early tactical tilts within our model portfolios, as we look to capture, or avoid, as much of a market's move as we can. Unexplained changes in volatility or performance within our monitored list of investments are also considered, as we know that even short-term bumps in the road can quickly derail a client's long-term plans.
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Stage 2 - BAROMETRICS
MRI data is then filtered through our BAROMETRICS screen. This analysis engine takes a more granular look inside the trends found, but down at the fund level. Simply, we aim to highlight investments we feel are likely to out or under-perform should the current market direction continue.
Stage 3 - FIT INDEX
Finally, any funds still left standing must go through a Magellan FIT INDEX measurement. In simple terms, we are looking for that sweet-spot of fund managers who 'earn their fees' by performing well, but without taking too much extra market risk to do so. UNFIT managers failing our test will be those collecting high levels of fees for mediocre performance, or where they have performed well only by 'betting the farm'.
