Magellan Global Fund

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

  • Unlisted
  • Unhedged
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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 reducing the risk of permanent capital loss.

Fund facts

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 $1,000
31 March 2018

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

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 2007.

31 March 2018
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
10 Years
(% PA)
Since Inception
(% PA)
Magellan Global Fund 0.67% 7.22% 13.45% 8.00% 16.21% 17.13% 13.02% 11.11%
Benchmark* 0.66% 6.54% 12.97% 7.82% 16.65% 13.39% 7.76% 5.52%
Out/Under Performance 0.01% 0.68% 0.48% 0.18% - 0.44% 3.75% 5.26% 5.58%

* MSCI World Net Total Return Index (AUD)
** Inception date 01 July 2007

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 relvant 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
23/04/2018 2.1325 2.1346 2.1304
20/04/2018 2.1209 2.1230 2.1188
19/04/2018 2.1156 2.1177 2.1135
18/04/2018 2.1206 2.1227 2.1185
17/04/2018 2.1253 2.1274 2.1232
16/04/2018 2.1041 2.1062 2.1020
13/04/2018 2.0961 2.0982 2.0940
12/04/2018 2.1062 2.1083 2.1041
11/04/2018 2.0935 2.0956 2.0914
10/04/2018 2.0997 2.1018 2.0976
09/04/2018 2.0922 2.0943 2.0901
06/04/2018 2.0907 2.0928 2.0886
05/04/2018 2.1170 2.1191 2.1149
04/04/2018 2.0959 2.0980 2.0938
03/04/2018 2.0853 2.0874 2.0832
29/03/2018 2.1083 2.1104 2.1062
28/03/2018 2.0876 2.0897 2.0855
27/03/2018 2.0741 2.0762 2.0720
26/03/2018 2.1065 2.1086 2.1044
23/03/2018 2.0614 2.0635 2.0593
22/03/2018 2.1010 2.1031 2.0989
21/03/2018 2.1322 2.1343 2.1301
20/03/2018 2.1463 2.1484 2.1442
19/03/2018 2.1525 2.1547 2.1503
16/03/2018 2.1747 2.1769 2.1725
15/03/2018 2.1538 2.1560 2.1516
14/03/2018 2.1343 2.1364 2.1322
13/03/2018 2.1385 2.1406 2.1364
12/03/2018 2.1604 2.1626 2.1582
09/03/2018 2.1638 2.1660 2.1616
08/03/2018 2.1509 2.1531 2.1487
07/03/2018 2.1339 2.1360 2.1318
06/03/2018 2.1287 2.1308 2.1266
05/03/2018 2.1444 2.1465 2.1423
02/03/2018 2.1261 2.1282 2.1240
01/03/2018 2.1242 2.1263 2.1221
28/02/2018 2.1412 2.1433 2.1391
27/02/2018 2.1549 2.1571 2.1527
26/02/2018 2.1671 2.1693 2.1649
23/02/2018 2.1529 2.1551 2.1507
22/02/2018 2.1201 2.1222 2.1180
21/02/2018 2.1190 2.1211 2.1169
20/02/2018 2.1118 2.1139 2.1097
19/02/2018 2.1164 2.1185 2.1143
16/02/2018 2.1142 2.1163 2.1121
15/02/2018 2.1232 2.1253 2.1211
14/02/2018 2.1067 2.1088 2.1046
13/02/2018 2.0888 2.0909 2.0867
12/02/2018 2.0948 2.0969 2.0927
09/02/2018 2.0792 2.0813 2.0771

Distribution history

 

Date Distribution per unit Reinvestment price  
June 2017 4.8578 cents $1.9373 Magellan Annual Fund Distributions 2017
June 2016 15.2344 cents $1.7214  
June 2015 24.3397 cents $1.8757  
June 2014 5.9876 cents $1.6368  
June 2013 3.2550 cents $1.5184  

Invest now in the Magellan Global Fund

  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 4968
    Sydney NSW 2001

Or
Speak to a Financial Adviser

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How-To Invest

FAQs

A minimum initial investment of $10,000 and minimum subsequent investment of $5,000 applies to each of Magellan’s unlisted funds.

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

Unlisted Funds

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

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