Magellan Global Fund

A core holding investing in 20 to 40 of the world’s best global stocks

Investment objectives

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

While minimising the risk of permanent capital loss

Invest in the world's best

  • Alibaba
  • Alphabet
  • Facebook
  • Starbucks
  • Microsoft
  • Pepsico
  • Netflix
  • Tencent
  • Reckitt Benckiser
  • Novartis

Meet the Manager

Hamish Douglass, Magellan’s Chairman and CIO, reflects on a remarkable 12 months since the pandemic shook global markets, he discusses portfolio performance over recent months and his view on the current state of the market including the recent volatility and trending investor exuberance. (Viewing time: 29 mins)

Choose from two unique access points

Investors can access the Magellan Global Fund through two distinct unit classes. These two unit classes offer investors the same global equities investment strategy, but have their own benefits which you will need to consider:
 

Open Class Units are quoted on the ASX (ASX: MGOC) and also directly available for purchase and redemption with the fund itself. Open Class Units should generally trade on the ASX close to the prevailing Net Asset Value and you can buy and sell units off market with the fund at the prevailing Net Asset Value.

Closed Class Units are only quoted on the ASX (ASX: MGF). Closed Class units can trade at a premium or a discount to the Net Asset Value. If you participate in the Distribution Reinvestment Plan you can reinvest your distributions at a 7.5% discount to the Net Asset Value. This discounted benefit is only offered to holders of Closed Class Units.

To find out more about your preferred unit class, and for information on how to invest, please select either the Open Class or Closed Class toggle below.

Fund facts

Structure
Global Equity Fund, AUD unhedged
Inception date
30 November 2020
Unit Class size
$3,257.60 million 30 Jun 2021
ASX Ticker
MGF Market Data Tickers
  Units
Bloomberg MGF AU EQUITY
Thomson Reuters MGF.AX
IRESS MGF.ASX
Solactive iNav
AUD $
Ticker details
  Indicative NAV
Bloomberg MGFIV INDEX
Thomson Reuters MGFAUiv.P
IRESS MGFAUDINAV.ETF
More about iNAV
More information about iNav

The iNAV reflects the estimated NAV per Closed Class Unit updated in respect of portfolio securities or equivalent securities that have live market prices during the Trading Day and for foreign exchange movements. If there are no stocks held by the Fund that have live market prices during the ASX Trading Day, movements in the iNAV will only reflect foreign exchange movements. The iNAV will not be updated for market-based movements such as movements in stock market indices.

Management fee Distribution Frequency ARSN
1.35% Semi-annually 126 366 961
Benchmark
MSCI World Net Total Return Index (AUD)
Performance Fee

10.0% of excess return over the higher of the Index Relative Hurdle (MSCI World Net Total Return Index (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.

Click here for further information on the benchmark.

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

Investment philosophy

The Magellan Global Fund 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 Fund 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.

Magellan focuses on risk-adjusted returns, rather than benchmark-relative returns. As a result, the Magellan Global Fund's investment process is designed to generate an unconstrained, concentrated portfolio of high-quality companies.

Magellan believes that an appropriately structured portfolio of 20 to 40 investments can provide sufficient diversification to ensure that investors are not overly correlated to any single company, industry-specific or macroeconomic risk.

Portfolio construction

The Magellan Global Fund's 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 $10,000
30 June 2021

Important Information: Calculations are based on NAV prices with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Fund Inception 30 November 2020 (inclusive).

30 June 2021
Performance 3 Months 6 Months Since Inception**
(%)
Magellan Global Fund Closed Class (ASX: MGF) 8.20% 11.51% 7.50%
Benchmark* 9.31% 16.19% 15.31%
Out/Under Performance -1.11% -4.68% -7.81%

* MSCI World Net Total Return Index (AUD)
** Inception date 30 November 2020

Click here for further information on the benchmark.

Important Information: Calculations are based on NAV prices with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Fund Inception 30 November 2020 (inclusive).

Estimated NAV per Unit

Distribution history

IMPORTANT


Please ensure that your Tax File Number (TFN) or Australian Business Number (ABN) is provided to the Unit Registry by Record Date, otherwise tax will be withheld on income attributed to you at the top marginal tax rate plus Medicare Levy.

If you have elected to receive distributions in cash, please ensure that your bank account details are provided to the Unit Registry by Record Date, otherwise your distribution payment will be withheld until a valid bank account is provided.

To review or update your TFN/ABN and bank account details, log on to the Unit Registry’s online portal.


 

Date Distribution per unit Reinvestment price  
June 2021 3.6600 cents $1.7856 Magellan Annual Fund Distributions 2021

Invest now in the Magellan Global Fund Closed Class (ASX: MGF)

  1. View the indicative Net Asset Value (iNav) 

    Solactive iNav
    AUD $
    Ticker details
      Indicative NAV
    Bloomberg MGFIV INDEX
    Thomson Reuters MGFAUiv.P
    IRESS MGFAUDINAV.ETF

  2. Check the current share price - MGF

  3. Buy on the ASX - Ticker Code MGF

 

Investors should read the Product Disclosure Statement (PDS) prior to making any investment decisions.

 

New to Investing? Learn more about our global equities

  • Being a successful investor

    11 attributes we think lie behind Magellan’s long-term success in delivering competitive returns while protecting capital.

    Read article
  • Delivering outstanding results

    At Magellan, the key question we ask ourselves is: “What does the future look like?”. Our answer determines how we invest your money.

    Our global fund returns
  • Why global?

    The case for global investing rests largely on the belief that companies based outside Australia are expected to benefit the most from the key long-term shifts taking place all over the world.

    More on global investing

Investing with Magellan gives you easy access to outstanding global companies: Invest in the world's best.

FAQs

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

  • ASX announcements under the ASX code MGF;
  • 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.

Yes, in respect of each Target Cash Distribution, Magellan may offer a DRP at its discretion. Magellan intends to offer Unitholders who elect to participate in the DRP in respect of the Target Cash Distribution an issue price which is set at a 7.5% discount to the prevailing NAV per Unit. As an additional benefit to Unitholders and to ensure that Unitholders who elect not to participate in the DRP suffer no dilution as a result of the DRP discount, the Magellan Group will pay Magellan Global Trust an amount of consideration equal to the cost of this discount.

If you wish to participate in the Distribution Reinvestment Plan (DRP), you can either update your election in the Unit Registry portal, available at  magellan.mainstreamfs.com/login or complete the DRP Election Form located at on the website at www.magellangroup.com.au/funds/forms-pds/

Magellan intends to target a cash distribution yield of 4% per annum based on the average month-end NAV per Unit over a two-year rolling period (“Target Cash Distribution”).

Magellan will announce Magellan Global Fund’s Target Cash Distribution per Unit on ASX at the beginning of each semi-annual distribution period. Magellan expects that the distribution policy will provide unitholders with greater certainty about the value of upcoming distributions.

Where net income exceeds the targeted yield of 4% per annum, Magellan intends that the portion of any distribution in excess of the Target Cash Distribution will be required to be reinvested as additional Units in Magellan Global Trust.

Distributions will be paid semi-annually.

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

Mainstream Fund Services

Mainstream Fund Services provides a range of registry services including the processing of applications, redemptions and distributions as well as the maintenance of unitholder records.

Please contact Mainstream Fund Services directly for assistance with:

  • Applications or redemptions
  • Change of contact details
  • Change of bank account details

Investor Login

 

Telephone 1300 127 780 (in Australia) +61 2 8259 8566 (International) 0800 787 621 (New Zealand)