Magellan Global Fund Hedged

A core holding investing in 20 to 40 of the world’s best global stocks and protect returns from currency movements

Investment objectives

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

While reducing the risk of permanent capital loss.

Invest in the world's best

  • Alibaba
  • Alphabet
  • Facebook
  • Starbucks
  • Microsoft
  • Pepsico
  • Netflix
  • SAP
  • VISA
  • Yum! Brands

Choose from two unique access points

Investors can access a currency hedged version of the Magellan Global Fund either as unlisted or listed units. These funds offer investors the same global equities investment strategy with currency hedging in place, but with individual choice about how to hold the funds:
 

Unlisted units in the Managed Fund are available for purchase and redemption with the fund itself via an application form. Just complete an application form and deliver to the fund’s registry.

Listed units are quoted on the ASX (ASX:MHG) as an Active ETF and can be purchased and sold via either a stockbroker or an online share trading platform.

 

To find out more about your preferred method of access, and for information on how to invest, please select either the unlisted or listed toggle below.

 

Fund facts

Structure
Global Equity Fund, $AUD hedged
Inception date
1 July 2013
Fund size
$1,558.20 million 30 Sep 2021
Management fee Distribution Frequency ARSN
1.35% Bi-annual 164 285 661
Buy / Sell Spread APIR Code
0.07%/0.07% MGE0007AU
Benchmark
MSCI World Net Total Return Index (hedged to AUD)
Performance Fee

10.0% of the excess return of the units of the Fund above 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.

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 (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 Fund (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.

Magellan focuses on risk-adjusted returns, rather than benchmark-relative returns. As a result, the Magellan Global Fund (Hedged) 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 (Hedged)’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 September 2021

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

Click here for further information on the benchmark.

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). Fund Inception 1 July 2013.

30 September 2021
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
Since Inception**
(% PA)
Magellan Global Fund (Hedged) -3.05% 3.13% 8.69% 8.87% 11.98% 10.90% 11.18%
Benchmark* 0.57% 8.19% 28.33% 11.59% 13.37% 11.33% 12.66%
Out/Under Performance -3.62% -5.06% -19.64% -2.72% -1.39% -0.43% -1.48%

* MSCI World Net Total Return Index (hedged to AUD)
** Inception date 01 July 2013

Click here for further information on the benchmark.

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).

Unit Prices

  
Date Net Asset Value Entry Exit
19/10/2021 1.9650 1.9664 1.9636
18/10/2021 1.9556 1.9570 1.9542
15/10/2021 1.9501 1.9515 1.9487
14/10/2021 1.9453 1.9467 1.9439
13/10/2021 1.9245 1.9258 1.9232
12/10/2021 1.9115 1.9128 1.9102
11/10/2021 1.9143 1.9156 1.9130
08/10/2021 1.9245 1.9258 1.9232
07/10/2021 1.9260 1.9273 1.9247
06/10/2021 1.9095 1.9108 1.9082
05/10/2021 1.8925 1.8938 1.8912
01/10/2021 1.8996 1.9009 1.8983
30/09/2021 1.8855 1.8868 1.8842
29/09/2021 1.8984 1.8997 1.8971
28/09/2021 1.8906 1.8919 1.8893
27/09/2021 1.9252 1.9265 1.9239
24/09/2021 1.9374 1.9388 1.9360
23/09/2021 1.9375 1.9389 1.9361
22/09/2021 1.9277 1.9290 1.9264
21/09/2021 1.9212 1.9225 1.9199
20/09/2021 1.9179 1.9192 1.9166
17/09/2021 1.9450 1.9464 1.9436
16/09/2021 1.9600 1.9614 1.9586
15/09/2021 1.9604 1.9618 1.9590
14/09/2021 1.9660 1.9674 1.9646
13/09/2021 1.9710 1.9724 1.9696
10/09/2021 1.9741 1.9755 1.9727
09/09/2021 1.9827 1.9841 1.9813
08/09/2021 1.9956 1.9970 1.9942
07/09/2021 1.9915 1.9929 1.9901
06/09/2021 1.9937 1.9951 1.9923
03/09/2021 1.9902 1.9916 1.9888
02/09/2021 1.9922 1.9936 1.9908
01/09/2021 1.9994 2.0008 1.9980
31/08/2021 1.9845 1.9859 1.9831
30/08/2021 1.9809 1.9823 1.9795
27/08/2021 1.9688 1.9702 1.9674
26/08/2021 1.9595 1.9609 1.9581
25/08/2021 1.9695 1.9709 1.9681
24/08/2021 1.9746 1.9760 1.9732
23/08/2021 1.9757 1.9771 1.9743
20/08/2021 1.9680 1.9694 1.9666
19/08/2021 1.9585 1.9599 1.9571
18/08/2021 1.9584 1.9598 1.9570
17/08/2021 1.9729 1.9743 1.9715
16/08/2021 1.9814 1.9828 1.9800
13/08/2021 1.9763 1.9777 1.9749
12/08/2021 1.9701 1.9715 1.9687
11/08/2021 1.9696 1.9710 1.9682
10/08/2021 1.9701 1.9715 1.9687

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 3.4300 cents $1.9448 Magellan Annual Fund Distributions 2021
December 2020 3.3200 cents $1.8102 Magellan Interim Fund Distributions 2020
June 2020 6.5000 cents $1.6862 Magellan Annual Fund Distributions 2020
June 2019 5.5000 cents $1.6760 Magellan Annual Fund Distributions 2019
June 2018 10.0066 cents $1.5212 Magellan Annual Fund Distributions 2018
June 2017 3.0000 cents $1.4332 Magellan Annual Fund Distributions 2017
June 2016 2.0000 cents $1.2217 Magellan Annual Fund Distributions 2016
June 2015 2.0000 cents $1.2525 Magellan Annual Fund Distributions 2015
June 2014 2.0000 cents $1.1316 Magellan Annual Fund Distributions 2014

24 September 2020 – Distribution Policy Update - click here.

Invest now in the Magellan Global Fund (Hedged)

  1. Complete the Application Form & CRS Form(s) (if applicable)
    You will be guided by the Application Form as to which CRS form(s) to complete.

  2. Send application form to Mainstream Fund Services
    Mainstream Fund Services - Unit Registry
    GPO Box 143
    Sydney NSW 2001

    Or Email the application form to magellanfunds@mainstreamgroup.com

    Temporary processes available during COVID-19

Speak with your adviser/broker. To find an adviser, visit Financial Planning Association of Australia (FPA) or Association of Financial Advisers (AFA).

Application Form

Please ensure that you have read and understood the original FSG and PDS prior to completing and submitting your Application Form.

The automated forms can be either completed on screen and then printed, or downloaded and filled in by hand.

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.

Continuous Disclosure

24 September 2020 - Distribution Policy Update

On 24 September Magellan announced a distribution policy update for the funds for which it acts a responsible entity (‘Fund’ or ‘Funds’).

For each Fund, Magellan intends to target a specific cash distribution yield (“Target Cash Distribution”) and pay distributions semi-annually. Each Fund’s Target Cash Distribution per unit for each semi-annual period will be based on the average of the month-end net asset values per unit applicable to a Fund, or a Fund’s unit class, over a two year rolling period and will be announced at the beginning of each semi-annual distribution period.

This update harmonises the distribution policies across Magellan’s Funds and, Magellan believes, provides investors with greater certainty on the amount of upcoming cash distributions.

For further information and for the Target Cash Distribution per annum for each Fund, please click here.

FAQs

If you have chosen to receive communication via email, you will receive confirmation of your investment within 3 business days from when our unit registry (Mainstream Fund Services) has received your correctly completed Application Form (or notice of additional investment) and cleared application monies. Please note that if you choose to invest by cheque or request us to process a direct debit, it may take up to two business days (in the case of a cheque) and three business days (in the case of a direct debit) for your application monies to clear. If you have chosen to receive communication via mail, please allow for postage time on top of the 3 business days from receipt of your correctly completed Application Form (or notice of additional investment) and cleared application monies

During distribution periods (at the start of July and the start of January for some funds) receipt of your confirmation statement may be delayed by 10-15 business days.

A minimum initial investment of $10,000 and minimum subsequent investment of $5,000 applies to each of Magellan’s unlisted funds (except for Magellan High Conviction Class B which is a minimum initial investment of $100,000 and a minimum subsequent investment of $10,000).

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 obtain and read the relevant Target Market Determination (‘TMD’) and Product Disclosure Statement (‘PDS’) applicable to the fund(s) prior to making a decision about whether to acquire or continue to hold an interest in the fund(s). The TMD and PDS for the fund(s) are available on this website 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)