Magellan Global Equities Fund (Currency Hedged) (Managed Fund) (ASX:MHG)

An ASX-listed Active ETF investing in 20 to 40 of the world’s best global stocks and protect returns from currency movements

  • Listed
  • Hedged
  • Active ETF
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Reports & ASX Releases

Invest in the world's best

  • HCA Holdings Inc
  • Alphabet
  • Apple
  • Facebook
  • Kraft Heinz
  • Lowes
  • Microsoft
  • Starbucks
  • VISA
  • Wells Fargo

Investment objectives

To achieve attractive risk-adjusted returns over the medium to long term;

While minimising the risk of permanent capital loss

Fund facts

Portfolio manager Structure Inception date Fund size ** ASX Ticker Intraday Indicative Nav*
Hamish Douglass
Hamish Douglass
Global Equity Fund, $AUD hedged 4 August 2015 AUD $65.0 million MHG Ticker Details
  Units Indicative NAV
Bloomberg MHG AU EQUITY MHGIV INDEX
Thomson Reuters MHG.AX MHGin.IDCC
IRESS MHG.AXW MHGNAV.ETF
Management & Administration fee Distribution Frequency ARSN code
1.35% Annually 606 840 206
Benchmark
MSCI World Net Total Return Index (hedged to AUD)
Performance Fee

10.0% of excess return over the higher of the Index Relative Hurdle (MSCI World Net Total Return Index (hedged to AUD)) and the Absolute Return Hurdle (the yield of 10-year Australian Government Bonds). Additionally, the performance fees are subject to a high water mark.

All management costs described above are inclusive of the estimated net effect of GST.

* The iNAV reflects the estimated NAV per Unit updated in respect of the Fund’s portfolio stocks that have live market prices during the ASX Trading Day and for foreign exchange movements to the extent that the impact is not offset by the hedging of the Fund’s foreign currency exposure.

The iNAV is provided by Interactive Data and is updated during Australian Securities Exchange trading hours. It is indicative and for reference purposes only, and is subject to Interactive Data’s terms and conditions of use which are available here.

** As at 31 March 2018

Investment philosophy

The Magellan Global Equities Fund (Currency Hedged) seeks to invest in outstanding companies at attractive prices, while exercising a deep understanding of the macroeconomic environment to manage investment risk.

Magellan perceives outstanding companies to be those that are able to sustainably exploit competitive advantages in order to continually earn returns on capital that are materially in excess of their cost of capital.

While Magellan is extremely focused on fundamental business value, it is not a typical ’value’ investor. The Magellan Global Equities Fund (Currency Hedged) will invest in companies that have relatively high price-to-earnings and price-to-book multiples, provided that their businesses are outstanding and their shares are trading at an appropriate discount to their assessed intrinsic value. Equities that appear undervalued on the basis of a low price-to-earnings or price-to-book multiples will often prove to be poor investments if the underlying business is fundamentally weak and exhibits poor returns on capital.

The Magellan Global Equities Fund (Currency Hedged) seeks to invest in outstanding companies at attractive prices, while exercising a deep understanding of the macroeconomic environment to manage investment risk.

Magellan perceives outstanding companies to be those that are able to sustainably exploit competitive advantages in order to continually earn returns on capital that are materially in excess of their cost of capital.

While Magellan is extremely focused on fundamental business value, it is not a typical ’value’ investor. The Magellan Global Equities Fund (Currency Hedged) will invest in companies that have relatively high price-to-earnings and price-to-book multiples, provided that their businesses are outstanding and their shares are trading at an appropriate discount to their assessed intrinsic value. Equities that appear undervalued on the basis of a low price-to-earnings or price-to-book multiples will often prove to be poor investments if the underlying business is fundamentally weak and exhibits poor returns on capital.

Portfolio construction

The Magellan Global Equities Fund (Currency Hedged) investment process integrates three key disciplines:

Intensive bottom-up stock analysis and industry research is undertaken in order to identify outstanding companies. This involves the assessment of potential investments against key quality criteria, as well as assessments of their intrinsic value. Magellan uses a proprietary ranking tool, the Magellan Conviction Scoring Matrix, to rank these companies based on these factors. This process enables the portfolio to be weighted towards higher conviction ideas (on a risk-adjusted basis).

Magellan’s detailed macroeconomic analysis is overlayed during portfolio construction, alongside the application of both fixed and dynamic risk limits. This process ensures that the portfolio is not overly exposed to aggregation risk (risk which arises from correlated portfolio positions) or macroeconomic event risk. Macroeconomic event risk can be a significant source of negative returns for investors. Magellan will make significant changes to the portfolio if it believes that macroeconomic events could lead to significant and sustained loss in value for investors. Such events would include a financial crisis, a sustained oil price shock, a global pandemic or a major global conflict.

Performance

Growth of AUD $1,000
31 March 2018

** MSCI World Net Total Return Index (hedged to AUD).

Calculations are based on the monthly ASX released net asset value with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Fund Inception 4 August 2015.

31 March 2018
Performance 3 Months 6 Months 1 Year Since Inception
(% PA)
Magellan Global Equities Fund (Currency Hedged) (ASX:MHG) - 1.83% 4.36% 13.12% 8.50%
Benchmark* - 2.31% 3.15% 10.71% 8.49%
Out/Under Performance 0.48% 1.21% 2.41% 0.01%

* MSCI World Net Total Return Index (hedged to AUD)
** Inception date 04 August 2015

Important Information: Calculations are based on exit price with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). For the ASX Quoted Funds calculations are based on NAVs, published in the ASX announcements for the relevant ASX Quoted Funds, with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable).

Estimated NAV per Unit

Distribution history

Date Distribution per unit Reinvestment price  
June 2017 5.0000 cents $2.8035 Magellan Annual Fund Distributions 2017
June 2016 5.0000 cents $2.4073  

Invest now in the Magellan Global Equities Fund (Currency Hedged) (Managed Fund) (ASX:MHG)

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FAQs

Magellan’s Active ETFs are actively managed investment funds that are quoted on ASX and can be bought and sold just like any other stock listed on ASX. These funds provide investors with easy access to the benefits of investing in global equities and the investment experience and expertise of Magellan.

We seek to be transparent with our clients and are making the following disclosures in relation to our listed funds:

  • ASX announcements under each ASX code;
  • Estimated Net Asset Value ("NAV") per Unit published on Magellan’s website daily;
  • Indicative intra-day NAV per Unit ("iNAV") published on Magellan's website daily and which is updated throughout the ASX trading day;
  • Monthly fund factsheets on Magellan's website and ASX; and
  • The full portfolio on a quarterly basis with a delay period of no longer than two months on Magellan's website and ASX.

There is no minimum investment.

Yes, investors can reinvest their distributions to obtain additional units in the fund without having to pay the cost of brokerage. To participate in the DRP, please contact the unit registry Link Market Services on 1300 554 474.

Important Information: Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited (ABN 31 120 593 946, AFS Licence No 304 301). Past performance is not necessarily indicative of future results and no person guarantees the future performance of the fund(s), the amount or timing of any return from the fund(s), or that the investment objectives of the fund(s) will be achieved. This material has been provided for general information purposes and must not be construed as investment advice. It does not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should consider obtaining professional investment advice tailored to their specific circumstances and should read the relevant Product Disclosure Statement (PDS) applicable to the fund(s) prior to making any investment decisions. The PDS for the fund(s) is available at www.magellangroup.com.au or can be obtained by calling 02 9235 4888. Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. Nothing contained herein should be construed as granting by implication, or otherwise, any licence or right to use any trademark displayed without the written permission of the owner. No part of this material may be reproduced or disclosed, in whole or in part, without the prior written consent of Magellan Asset Management Limited.

Unit Registry Enquiries

Active ETFs

Magellan has appointed LINK Market Services Limited to provide unit registry services for Magellan's Active ETFs. To manage your unitholding including:

  • Change your contact details
  • Update our bank details
  • Change your DRP election

Please visit LINK at www.linkmarketservices.com.au using your Investor Login or use the contact details provided.

 

Contact Us

Emma Armstrong, Key Account Manager

 Telephone +61 2 9235 4956

 Email Emma.Armstrong@magellangroup.com.au