Bennelong takes on fledgling boutique

Two former Magellan portfolio managers have set up a new boutique and joined forces with Bennelong Funds Management to launch a global small and mid-cap strategy.

Canopy Investors was established in February 2023 by Kris Webster and Michael Poulsen, who worked together for more than a decade at Magellan leading the small and mid-cap team.

They have enlisted Bennelong to launch the Canopy Global Small & Mid Cap Fund, a concentrated portfolio of 20 to 40 companies operating in various sectors and regions and have a market cap of US$70 billion or less. Bennelong will provide distribution, administration, and business support.

The fund aims to achieve a return net of fees that exceed the S&P Developed Markets MidSmallCap (AUD) over five to seven years.

Webster spent nearly 15 years at Magellan with his most recent role being the head of global investments.

Poulsen worked at Magellan for over a decade, serving the final nine months as co-portfolio manager of the Magellan High Conviction Fund as well as its small and mid-cap funds.

Webster said that while Australian investors have dozens of options to access large-cap global listed equities, there are far fewer opportunities to invest in a portfolio of high-quality smaller global companies.

"By allocating to small and mid-cap companies, investors benefit from a broader range of opportunities and greater diversification. The global index is increasingly concentrated in the largest companies - the largest 200 companies represent about two-thirds of the most commonly referenced global index - and most global equities strategies are naturally focused on these stocks," he said.

Bennelong chief executive John Burke said: "We believe there are great opportunities in the small to mid-cap market in the current environment. The fund offers diversification away from an increasingly concentrated global large-cap index. This is an opportune time to launch a partnership with a specialist and experienced team of investment managers."

Bennelong and Quay Global Real Estate Fund recently won Financial Standard's Investment Leadership Awards for the best International Listed Property in 2024.