Magellan High Conviction

A concentrated portfolio invested in 8 to 12 of the world’s best global stocks

Investment objectives

To achieve attractive risk-adjusted returns over the medium to long-term through investment in a concentrated portfolio (8-12 securities) of high-quality companies.

Invest in the world's best

  • Alphabet
  • Amazon
  • Microsoft
  • Netflix
  • VISA

Choose from two unique access points

Investors can access the Magellan High Conviction Strategy either as an unlisted managed fund or as a managed fund whose units are quoted on the ASX. These funds offer investors the same global equities investment strategy, but with individual choice about how to access the strategy:

 Unlisted units are only 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: MHHT) as an Active ETF and also directly available for purchase and redemption with the fund itself.

 

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

Portfolio managers
Structure
Global Equity Fund, $AUD
Fund size
$590.20 million 30 Apr 2022
ASX Ticker
MHHT Market Data Tickers
  Units
IRESS MHHT.ASX
Bloomberg MHHT AU EQUITY
Refinitiv MHHT.AX
ICE iNav*
AUD $
Ticker details
  Indicative NAV
IRESS MHHT-AUINAV.NGIF
Bloomberg MHHTIV INDEX
Refinitiv MHHTAUiv.P
Solactive iNav
AUD $
Ticker details
  Indicative NAV
IRESS MHHTAUDINAV.ETF
Bloomberg MHHTAUIV INDEX
Refinitiv MHHTAUDINAV=SOLA
More about iNAV
More information about iNav

The iNAV reflects the estimated NAV per Unit updated for portfolio stocks that have live market prices during the Trading Day, or where they do not have live market prices, may be updated for equivalent securities or movements in after-market trading and for foreign exchange movements. The iNAV will not be updated for market-based movements such as movements in stock market indices.

Magellan has engaged ICE Data Indices, LLC and Solactive AG as iNAV calculation agents to independently calculate and disseminate an iNAV. Both iNAVs are freely available to investors. From time to time there may be differences between the two iNAVs as a result of different calculation methodologies or timing of the data.

Management fee Distribution Frequency ARSN
1.50% Semi-annually 634 789 754
Buy / Sell Spread APIR Code
0.07%/0.07% (Only applicable to investors who apply for units directly with the Fund) MGE1055AU
Performance Fee

10.0% of the excess return of the Trust above the Absolute Return Performance Hurdle (10% per annum). Additionally, the performance fees are subject to a high water mark.

All fees are inclusive of the estimated net effect of GST.

* iNAV calculations as shown on www.magellangroup.com.au (the "data") provided by ICE Data Indices, see ICE Terms of Use, and is updated during ASX trading hours. Powered by Factset. iNAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates ("ICE Data") and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN.  IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose. 

Research ratings 1

Lonsec

Recommended

Morningstar

Neutral

Zenith

Recommended

Investment philosophy

The Magellan High Conviction Trust 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 High Conviction Trust 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 High Conviction Trust investment process is designed to generate an unconstrained, highly-concentrated portfolio of high-quality companies.

The Magellan High Conviction Trust will comprise of 8 to 12 investments, with the portfolio weighted towards Magellan's highest-conviction ideas.

Portfolio construction

The Magellan High Conviction Trust'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 April 2022

Important Information: Fund Inception date is 11 October 2019. Return calculations are based on exit price assuming distributions are reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). The Fund transitioned from a closed-ended Listed Investment Trust to an open-ended Active ETF on 31 August 2021, return calculations prior to that date are based on NAV price assuming distributions are reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). 

30 April 2022
Performance 3 Months 6 Months
Magellan High Conviction Trust (Managed Fund) (ASX: MHHT) -18.59% -22.79%

Important Information: Fund Inception date is 11 October 2019. Return calculations are based on exit price assuming distributions are reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). The Fund transitioned from a closed-ended Listed Investment Trust to an open-ended Active ETF on 31 August 2021, return calculations prior to that date are based on NAV price assuming distributions are 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
19/05/2022 1.3046 1.3055 1.3037
18/05/2022 1.3142 1.3151 1.3133
17/05/2022 1.3628 1.3638 1.3618
16/05/2022 1.3494 1.3503 1.3485
13/05/2022 1.3642 1.3652 1.3632
12/05/2022 1.3359 1.3368 1.3350
11/05/2022 1.3177 1.3186 1.3168
10/05/2022 1.3407 1.3416 1.3398
09/05/2022 1.3230 1.3239 1.3221
06/05/2022 1.3412 1.3421 1.3403
05/05/2022 1.3514 1.3523 1.3505
04/05/2022 1.4034 1.4044 1.4024
03/05/2022 1.3917 1.3927 1.3907
02/05/2022 1.4044 1.4054 1.4034
29/04/2022 1.3880 1.3890 1.3870
28/04/2022 1.4445 1.4455 1.4435
27/04/2022 1.3974 1.3984 1.3964
26/04/2022 1.3820 1.3830 1.3810
22/04/2022 1.3947 1.3957 1.3937
21/04/2022 1.4029 1.4039 1.4019
20/04/2022 1.4155 1.4165 1.4145
19/04/2022 1.4811 1.4821 1.4801
14/04/2022 1.4526 1.4536 1.4516
13/04/2022 1.4746 1.4756 1.4736
12/04/2022 1.4447 1.4457 1.4437
11/04/2022 1.4694 1.4704 1.4684
08/04/2022 1.4934 1.4944 1.4924
07/04/2022 1.5013 1.5024 1.5002
06/04/2022 1.4954 1.4964 1.4944
05/04/2022 1.5139 1.5150 1.5128
04/04/2022 1.5536 1.5547 1.5525
01/04/2022 1.5390 1.5401 1.5379
31/03/2022 1.5303 1.5314 1.5292
30/03/2022 1.5552 1.5563 1.5541
29/03/2022 1.5735 1.5746 1.5724
28/03/2022 1.5515 1.5526 1.5504
25/03/2022 1.5324 1.5335 1.5313
24/03/2022 1.5306 1.5317 1.5295
23/03/2022 1.5199 1.5210 1.5188
22/03/2022 1.5508 1.5519 1.5497
21/03/2022 1.5275 1.5286 1.5264
18/03/2022 1.5485 1.5496 1.5474
17/03/2022 1.5221 1.5232 1.5210
16/03/2022 1.5356 1.5367 1.5345
15/03/2022 1.4876 1.4886 1.4866
14/03/2022 1.4493 1.4503 1.4483
11/03/2022 1.4496 1.4506 1.4486
10/03/2022 1.4667 1.4677 1.4657

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  
December 2021 2.3800 cents $1.8059 Magellan Interim Fund Distributions 2021
June 2021 2.2500 cents $1.6467 Magellan Annual Fund Distributions 2021
December 2020 2.2500 cents $1.4520 Magellan Interim Fund Distributions 2020
June 2020 2.2500 cents $1.4854 Magellan Annual Fund Distributions 2020
December 2019 2.2500 cents $1.5470 Magellan Interim Fund Distributions 2019

3 ways to access Magellan High Conviction Trust (Managed Fund) (ASX: MHHT)

Magellan High Conviction Trust
(Managed Fund) (ASX: MHHT)

  1. View the indicative Net Asset Value (iNav) *

    ICE iNav*
    AUD $
    Ticker details
      Indicative NAV
    IRESS MHHT-AUINAV.NGIF
    Bloomberg MHHTIV INDEX
    Refinitiv MHHTAUiv.P
    Solactive iNav
    AUD $
    Ticker details
      Indicative NAV
    IRESS MHHTAUDINAV.ETF
    Bloomberg MHHTAUIV INDEX
    Refinitiv MHHTAUDINAV=SOLA

  2. Check the current share price - MHHT

  3. Buy on the ASX - Ticker Code MHHT

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

Read the Product Disclosure Statement (PDS) prior to making any investment decisions.

- PDS update 19 April 2022

Additional information and forms

Magellan High Conviction Trust
(Managed Fund) (ASX: MHHT)

  1. Click here to APPLY NOW and start your online application process.

You will need the following information handy to support your online application:

  • Identification documents (e.g. drivers license) 
  • Mobile number and email address
  • Your Tax File Number (TFN)
  • Complete the FATCA/CRS self-certification

Note: Magellan accepts initial direct investments from individuals with a minimum of $10,000.  You must be over 18 years of age.

If you require a hard copy of the application from please request a copy here.

Additional information and forms

Log into the online portal via the link below to:

  • Check your balance(s), view transaction confirmations and periodic statements.
  • Update your personal details.
  • Invest additional funds and switch investments.
  • Participate in the Distribution Reinvestment Plan (DRP).
  • Provide your FATCA/CRS certification.

Magellan High Conviction Trust
(Managed Fund) (ASX: MHHT)

Speak with your adviser/broker. To locate an adviser in your area visit one of the following associations:

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

When buying units on the securities exchange, there is no minimum initial investment. When applying directly with the Responsible Entity, the minimum initial investment is $10,000.

Units in the Magellan High Conviction Trust are quoted on the ASX and can be bought and sold like any listed security. Alternatively, investors can apply and redeem units directly with the Responsible Entity.

We seek to be transparent with our clients and are making the following disclosures in relation to the Magellan High Conviction Trust:

  • ASX announcements under the ASX code MHHT;
  • 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.

Magellan intends to target a cash distribution yield of 3% per annum based on the average month-end NAV per Unit over a two-year rolling period (“Target Cash Distribution”). The Target Cash Distribution will be paid semi-annually.

Magellan will announce Magellan High Conviction Trust’s Target Cash Distribution per Unit on ASX at the beginning of each semi-annual distribution period.

Your HIN or SRN can be found on the top right hand corner of your holding statement and other shareholder communications. You will typically have a HIN if you bought your units on the Securities Exchange through a stockbroker. You will typically have an SRN if you applied for unit directly with the Responsible Entity.

A HIN is a Holder Identification Number issued by your stockbroker. It is a unique number used to link all your holdings, stocks, shares, and not specific to just Magellan. A HIN is 11 characters long. It starts with an ‘X’ followed by 10 digits. For example: X0001235898

An SRN is a Securityholder Reference Number issued by the Fund’s Unit Registry and is your unique identifier in the Fund. An SRN is 11 characters long and starts with an ‘I’ followed by 10 digits. Example: I00874500369. Your SRN will be stated on your first confirmation statement and partly masked for subsequent statements.

You can exit the Trust either by making a withdrawal request to the Responsible Entity using a Withdrawal Form or by selling units on the Securities Exchange (Ticker: MHHT) via your stockbroker or online broker. How you enter the Trust does not affect the method by which you can exit the Trust.

To make a withdrawal request to the Responsible Entity…

If you have a Securityholder Reference Number (SRN)

Complete the Withdrawal Form and return along with certified copies of identification documentation (AML/CTF) via post to our unit registry, Automic. Please contact Automic for specific identification documentation requirements applicable to your account type.

If you have a Holder Identification Number (HIN) with your stockbroker or online broker

You will need to convert your holding from your HIN with your stockbroker or online broker to an SRN issued by the unit registry. Please note that you will also need to supply certified copies of identification documentation via post to the unit registry.

Converting your holding from a HIN to a SRN is standard process, which your stockbroker or online broker can facilitate.

 

To sell your units on the Securities Exchange….

If you have a Securityholder Reference Number (SRN) or Investor Number

You can provide your SRN to certain stockbrokers who can sell your units on your behalf.

If your stockbroker does not offer this service, you will need to ask your stockbroker to convert or transfer your holding onto a HIN.  This is a standard process which your stockbroker facilitate. You can then instruct your stockbroker to sell your units on the Securities Exchange.

If you have a Holder Identification Number (HIN) with your stockbroker

You can instruct your stockbroker to sell your units on the Securities Exchange.


There are important differences between exiting the Trust via the Securities Exchange or by withdrawing directly with the Responsible Entity, including the price you will receive. You should read the PDS or consult with your financial adviser before making any decision on how to invest in the Trust.

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.

1Research house ratings disclaimers

The rating issued June 2021 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2020 Lonsec. All rights reserved.

© 2018 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. The Morningstar Analyst Rating™ for the Magellan High Conviction Fund Trust is ‘Neutral’ as of February 2022.

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned November 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines 

Unit Registry Enquiries

Automic Group

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

Please contact Automic Group directly for assistance with:

  • Applications or redemptions
  • Change of contact details
  • Change of bank account details
  • Tax Statements for MHH (now MHHT), previously held by Boardroom

 

Telephone 1300 408 792 (in Australia) +61 2 8072 1481 (International) +61 2 8072 1409 (Fax)