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

  • Transurban Group
  • Atmos Energy Corp
  • Xcel Energy
  • Crown Castle
  • Eversource Energy
  • Norfolk Southern
  • American Tower
  • Enbridge Inc
  • Vinci
  • Sempra Energy

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
Infrastructure Fund, $AUD unhedged
Inception date
1 July 2013
Fund size
$1,172.00 million 31 Aug 2021
Management fee Distribution Frequency ARSN
1.06% Semi-annually 164 285 830
Buy / Sell Spread APIR Code
0.15%/0.15% MGE0006AU
Benchmark
S&P Global Infrastructure Index A$ 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.

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 Infrastructure Fund (Unhedged) has been designed to provide investors with efficient access to the infrastructure asset class, while reducing the risk of permanent capital loss.

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
31 August 2021

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).

31 August 2021
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
Since Inception**
(% PA)
Magellan Infrastructure Fund (Unhedged) 8.19% 20.94% 14.46% 6.44% 7.76% 10.25% 11.51%
Benchmark* 6.80% 15.89% 21.44% 5.53% 6.26% 7.83% 9.16%
Out/Under Performance 1.39% 5.05% -6.98% 0.91% 1.50% 2.42% 2.35%

* 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

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
16/09/2021 1.8326 1.8353 1.8299
15/09/2021 1.8234 1.8261 1.8207
14/09/2021 1.8291 1.8318 1.8264
13/09/2021 1.8243 1.8270 1.8216
10/09/2021 1.8184 1.8211 1.8157
09/09/2021 1.8387 1.8415 1.8359
08/09/2021 1.8644 1.8672 1.8616
07/09/2021 1.8392 1.8420 1.8364
06/09/2021 1.8454 1.8482 1.8426
03/09/2021 1.8435 1.8463 1.8407
02/09/2021 1.8615 1.8643 1.8587
01/09/2021 1.8623 1.8651 1.8595
31/08/2021 1.8570 1.8598 1.8542
30/08/2021 1.8571 1.8599 1.8543
27/08/2021 1.8556 1.8584 1.8528
26/08/2021 1.8567 1.8595 1.8539
25/08/2021 1.8599 1.8627 1.8571
24/08/2021 1.8640 1.8668 1.8612
23/08/2021 1.8853 1.8881 1.8825
20/08/2021 1.9023 1.9052 1.8994
19/08/2021 1.8907 1.8935 1.8879
18/08/2021 1.8725 1.8753 1.8697
17/08/2021 1.8690 1.8718 1.8662
16/08/2021 1.8588 1.8616 1.8560
13/08/2021 1.8471 1.8499 1.8443
12/08/2021 1.8431 1.8459 1.8403
11/08/2021 1.8350 1.8378 1.8322
10/08/2021 1.8282 1.8309 1.8255
09/08/2021 1.8342 1.8370 1.8314
06/08/2021 1.8374 1.8402 1.8346
05/08/2021 1.8266 1.8293 1.8239
04/08/2021 1.8232 1.8259 1.8205
03/08/2021 1.8276 1.8303 1.8249
02/08/2021 1.8249 1.8276 1.8222
30/07/2021 1.8233 1.8260 1.8206
29/07/2021 1.8198 1.8225 1.8171
28/07/2021 1.8276 1.8303 1.8249
27/07/2021 1.8240 1.8267 1.8213
26/07/2021 1.8101 1.8128 1.8074
23/07/2021 1.8160 1.8187 1.8133
22/07/2021 1.7952 1.7979 1.7925
21/07/2021 1.7977 1.8004 1.7950
20/07/2021 1.8055 1.8082 1.8028
19/07/2021 1.8014 1.8041 1.7987
16/07/2021 1.8188 1.8215 1.8161
15/07/2021 1.8039 1.8066 1.8012
14/07/2021 1.7918 1.7945 1.7891
13/07/2021 1.7883 1.7910 1.7856
12/07/2021 1.7891 1.7918 1.7864
09/07/2021 1.7838 1.7865 1.7811

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 3.7900 cents $1.7392 Magellan Annual Fund Distributions 2021
December 2020 3.8100 cents $1.6528  
June 2020 4.5000 cents $1.7660 Magellan Annual Fund Distributions 2020
December 2019 3.0000 cents $2.0371  
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

24 September 2020 – Distribution Policy Update - click here.

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

    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.

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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 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

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