I would not recommend any type of varnish for exterior use. I have been building custom furniture for 45 years and now, will only use oil finishes. One of the items I build are mahogany canoes, you can see an example here. No fiberglass, just wood and glue.
http://spearfishcreek.net/index.php?opt ... 1&Itemid=2What I use on the canoes is a tung oil blend made by waterlox, it is not cheep but it holds up very well and is easy to apply or repair if needed.
http://www.waterlox.com/use the sealer finish original on most things and the marine version on things exposed to the weather.
First coat keep the wood wet for an hour and then wipe off the excess.
Day two flood on a coat and scrub it in using 0000 steel wool, wet or dry sand paper or a grey abrasive pad, your choice, wipe off the excess immediately.
Day 3 wipe on a thin even coat and don't wipe off (Thin/even). repeat day three until you are happy with the look. depending on the prep and number of coats you can have a matt finish or a high gloss, anything in-between, what ever you want. Most hard woods will only require three to four coats to provide a nice semi-gloss.
In the past I blended my own finishes and my own waxes but have stopped that after using Waterlox.