Magellan Infrastructure Fund (Unhedged)

Portfolio of 20 to 40 stocks that seeks to deliver the stable returns offered by the asset class

  • Unlisted
  • Unhedged
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Invest in the world's best

  • Evergy Inc
  • Transurban Group
  • Atmos Energy Corp
  • Xcel Energy
  • Eversource Energy
  • Aena SME SA
  • Aeroports de Paris
  • Enbridge Inc
  • Sempra Energy
  • Atlas Arteria

Investment objectives

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

While reducing the risk of permanent capital loss.

Fund facts

Portfolio manager Structure Fund size **
Gerald Stack
Gerald Stack
Infrastructure Fund, $AUD unhedged AUD $1,114.2 million
Management fee Distribution Frequency ARSN
1.05% Bi-annual 164 285 830
Buy / Sell Spread APIR Code
0.15%/0.15% MGE0006AU
Benchmark
S&P Global Infrastructure Index A$ Unhedged Net Total Return
Performance Fee

10.0% of the excess return of the Units of the Fund above the higher of the Index Relative hurdle (S&P Global Infrastructure Index A$ Unhedged Net Total Return) 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.
** As at 31 October 2019.

Investment philosophy

The Magellan Infrastructure Fund (Unhedged) has been designed to provide investors with efficient access to the infrastructure asset class, while protecting capital in adverse markets.

The infrastructure asset class, when appropriately defined, is characterised by monopoly-like assets that face reliable demand and enjoy predictable cashflows. As a result, Magellan has established proprietary classification criteria to appropriately categorise securities as investment grade infrastructure, and thus eligible for inclusion in its portfolios or otherwise. Potential investments that meet these criteria are expected to achieve strong underlying financial performance over medium- to long-term timeframes, which should translate into reliable, inflation-linked investment returns.

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 Infrastructure Fund (Unhedged)’s investment process involves three key stages:

Determining the investment universe; Only securities that meet Magellan’s proprietary infrastructure classification criteria are included in the Magellan Infrastructure Fund’s investable universe. In order for a security to meet this definition, its underlying business must provide a service that is essential to the efficient functioning of a community, while generating cash flows that are not subject to external risks such as commodity prices. Furthermore, Magellan evaluates other criteria, such as gearing levels, sovereign risk, regulatory risk and reporting transparency, which, if failed, will result in exclusion from the investment universe. Magellan believes that by excluding businesses that fail to meet these criteria, the universe consists purely of companies that enjoy reliable demand and generate predictable cash flows.

Assessing each potential investment's quality and intrinsic value; Each security in the investment universe is subjected to detailed analysis. This analysis includes evaluations of a company’s external environment, its business’s specific issues, its historical financial performance and its valuation.

Allocating capital to the securities within the investment universe in an appropriate manner; Portfolio construction is driven by the results of qualitative stock analysis, valuation, formal risk controls and factor risk management. The portfolio construction process focuses on long-term value rather than index-relative positioning.

 

The resulting portfolio provides investors with exposure to securities that meet Magellan’s infrastructure classification criteria, while giving consideration to each security’s quality and its price relative its assessed intrinsic value.

Performance

Growth of AUD $10,000
30 November 2019

** S&P Global Infrastructure Index A$ Unhedged Net Total Return spliced with UBS Developed Infrastructure and Utilities Net Total Return Index (AUD). Note: as the UBS Developed Infrastructure and Utilities Net Total Return Index (AUD) ceased to be published from 31 May 2015, it was replaced by Magellan on 1 January 2015 with the S&P Global Infrastructure Index A$ Unhedged Net Total Return 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).

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).

30 November 2019
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
Since Inception
(% PA)
Magellan Infrastructure Fund (Unhedged) 0.89% 9.89% 26.25% 16.45% 13.46% 15.40%
Benchmark* 2.36% 8.97% 26.09% 13.07% 9.68% 12.28%
Out/Under Performance - 1.47% 0.92% 0.16% 3.38% 3.78% 3.12%

* As the UBS Developed Infrastructure and Utilities Net Total Return Index (AUD) ceased to be published from 31 March 2015, it was replaced by Magellan on 1 January 2015 with the S&P Global Infrastructure Index A$ Unhedged Net Total Return.
** Inception date 01 July 2013

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
04/12/2019 2.0469 2.0500 2.0438
03/12/2019 2.0411 2.0442 2.0380
02/12/2019 2.0505 2.0536 2.0474
29/11/2019 2.0808 2.0839 2.0777
28/11/2019 2.0834 2.0865 2.0803
27/11/2019 2.0841 2.0872 2.0810
26/11/2019 2.0836 2.0867 2.0805
25/11/2019 2.0715 2.0746 2.0684
22/11/2019 2.0636 2.0667 2.0605
21/11/2019 2.0643 2.0674 2.0612
20/11/2019 2.0724 2.0755 2.0693
19/11/2019 2.0690 2.0721 2.0659
18/11/2019 2.0734 2.0765 2.0703
15/11/2019 2.0699 2.0730 2.0668
14/11/2019 2.0604 2.0635 2.0573
13/11/2019 2.0440 2.0471 2.0409
12/11/2019 2.0353 2.0384 2.0322
11/11/2019 2.0329 2.0359 2.0299
08/11/2019 2.0280 2.0310 2.0250
07/11/2019 2.0285 2.0315 2.0255
06/11/2019 2.0348 2.0379 2.0317
05/11/2019 2.0420 2.0451 2.0389
04/11/2019 2.0564 2.0595 2.0533
01/11/2019 2.0673 2.0704 2.0642
31/10/2019 2.0559 2.0590 2.0528
30/10/2019 2.0534 2.0565 2.0503
29/10/2019 2.0562 2.0593 2.0531
28/10/2019 2.0613 2.0644 2.0582
25/10/2019 2.0700 2.0731 2.0669
24/10/2019 2.0787 2.0818 2.0756
23/10/2019 2.0657 2.0688 2.0626
22/10/2019 2.0616 2.0647 2.0585
21/10/2019 2.0583 2.0614 2.0552
18/10/2019 2.0593 2.0624 2.0562
17/10/2019 2.0687 2.0718 2.0656
16/10/2019 2.0750 2.0781 2.0719
15/10/2019 2.0645 2.0676 2.0614
14/10/2019 2.0605 2.0636 2.0574
11/10/2019 2.0623 2.0654 2.0592
10/10/2019 2.0676 2.0707 2.0645
09/10/2019 2.0723 2.0754 2.0692
08/10/2019 2.0600 2.0631 2.0569
04/10/2019 2.0640 2.0671 2.0609
03/10/2019 2.0504 2.0535 2.0473
02/10/2019 2.0596 2.0627 2.0565
01/10/2019 2.0908 2.0939 2.0877
30/09/2019 2.0799 2.0830 2.0768
27/09/2019 2.0712 2.0743 2.0681
26/09/2019 2.0774 2.0805 2.0743
25/09/2019 2.0689 2.0720 2.0658

Distribution history

Date Distribution per unit Reinvestment price  
June 2019 7.2620 cents $1.9716 Magellan Annual Fund Distributions 2019
December 2018 2.1500 cents $1.7076  
June 2018 3.1000 cents $1.7216 Magellan Annual Fund Distributions 2018
December 2017 1.6000 cents $1.6803  
June 2017 3.0822 cents $1.6208 Magellan Annual Fund Distributions 2017
December 2016 1.0000 cents $1.5147  
June 2016 5.0730 cents $1.5804 Magellan Annual Fund Distributions 2016
December 2015 1.5000 cents $1.5181  
June 2015 3.3044 cents $1.4038 Magellan Annual Fund Distributions 2015
December 2014 1.0000 cents $1.3697  
June 2014 1.5681 cents $1.2047 Magellan Annual Fund Distributions 2014

Invest now in the Magellan Infrastructure Fund (Unhedged)

  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

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

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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 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)