Australia’s Magellan Hires Mentzines in Sydney Amid Asset Growth

Magellan Financial Group Ltd. hired the former chief financial officer of Sydney Airport for its infrastructure team, as it expands coverage and increases investment assets.

Stephen Mentzines started last week as a portfolio manager in Sydney alongside Gerald Stack and Dennis Eagar, after the Australian money manager increased infrastructure assets by 33 percent to A$5.66 billion ($4.2 billion) in the past 12 months. The appointment of Mentzines, who resigned as Sydney Airport CFO last year, expands the infrastructure team to six and is part of a 28 percent increase in the firm’s headcount in the past year to 92.

Magellan’s infrastructure team is one part of its wider business that’s better known for the biggest Australian-domiciled global equities fund. Under the stewardship of CEO and co-founder Hamish Douglass, Magellan this year broadened access to its funds via the stock exchange and with a currency-hedged version of its world share fund.

“We expect to continue to grow,” Stack, Magellan’s Sydney-based head of investments, said in an interview Aug. 7. When hiring Mentzines “we tried to tell it as it is. There’s a raft of opportunities ahead of us. Structurally, investors will continue to allocate to infrastructure,” said Stack, who has worked for the firm since 2007.

The infrastructure fund counted toll-road operator Transurban Group and Crown Castle International Corp. among its largest positions through the end of June, according to its most recent investor update.

Stack said he would look to add one or two more to his six-person infrastructure team over the next five years as the number of stocks that his analysts cover grows.

Magellan Financial shares in Sydney climbed 66 percent in the 12 months through Friday, compared with a 0.6 percent drop on the country’s equities benchmark gauge, the S&P/ASX 200 Index. The company reports earnings on Tuesday.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE