Magellan Infrastructure Fund

Portfolio of 20 to 40 stocks that seeks to deliver the stable returns offered by the asset class, while protecting returns from currency movements

Investment objectives

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

While reducing the risk of permanent capital loss.

Invest in the world's best

  • Transurban Group
  • Atmos Energy Corp
  • Xcel Energy
  • Crown Castle
  • Eversource Energy
  • Aena SME SA
  • American Tower
  • Enbridge Inc
  • Vinci
  • Sempra Energy

Choose from two unique access points

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

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:MICH) 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

Portfolio manager
Structure
Infrastructure Fund, $AUD hedged
Inception date
1 July 2007
Fund size
$2,770.20 million 30 Jun 2021
Management fee Distribution Frequency
1.06% Bi-annual
Buy / Sell Spread APIR Code
0.15%/0.15% MGE0002AU
Benchmark
S&P Global Infrastructure Index A$ Hedged 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$ Hedged 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 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’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 June 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) Fund Inception. 1 July 2007.

30 June 2021
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
10 Years
(% PA)
Since Inception**
(% PA)
Magellan Infrastructure Fund 2.77% 5.66% 7.87% 4.60% 5.86% 8.40% 10.52% 7.60%
Benchmark* 1.81% 5.96% 17.23% 3.34% 4.81% 5.25% 7.91% 5.10%
Out/Under Performance 0.96% -0.30% -9.36% 1.26% 1.05% 3.15% 2.61% 2.50%

* As the UBS Developed Infrastructure and Utilities Net Total Return Index (hedged to 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$ Hedged Net Total Return.
** Inception date 1 July 2007

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
03/08/2021 1.3456 1.3476 1.3436
02/08/2021 1.3422 1.3442 1.3402
30/07/2021 1.3377 1.3397 1.3357
29/07/2021 1.3405 1.3425 1.3385
28/07/2021 1.3406 1.3426 1.3386
27/07/2021 1.3445 1.3465 1.3425
26/07/2021 1.3351 1.3371 1.3331
23/07/2021 1.3375 1.3395 1.3355
22/07/2021 1.3244 1.3264 1.3224
21/07/2021 1.3208 1.3228 1.3188
20/07/2021 1.3257 1.3277 1.3237
19/07/2021 1.3241 1.3261 1.3221
16/07/2021 1.3455 1.3475 1.3435
15/07/2021 1.3376 1.3396 1.3356
14/07/2021 1.3334 1.3354 1.3314
13/07/2021 1.3289 1.3309 1.3269
12/07/2021 1.3309 1.3329 1.3289
09/07/2021 1.3259 1.3279 1.3239
08/07/2021 1.3220 1.3240 1.3200
07/07/2021 1.3330 1.3350 1.3310
06/07/2021 1.3235 1.3255 1.3215
05/07/2021 1.3224 1.3244 1.3204
02/07/2021 1.3081 1.3101 1.3061
01/07/2021 1.3022 1.3042 1.3002
30/06/2021 (ex) 1.2956 1.2975 1.2937
30/06/2021 1.3227 1.3247 1.3207
29/06/2021 1.3259 1.3279 1.3239
28/06/2021 1.3379 1.3399 1.3359
25/06/2021 1.3414 1.3434 1.3394
24/06/2021 1.3332 1.3352 1.3312
23/06/2021 1.3283 1.3303 1.3263
22/06/2021 1.3419 1.3439 1.3399
21/06/2021 1.3467 1.3487 1.3447
18/06/2021 1.3433 1.3453 1.3413
17/06/2021 1.3619 1.3639 1.3599
16/06/2021 1.3589 1.3609 1.3569
15/06/2021 1.3646 1.3666 1.3626
11/06/2021 1.3540 1.3560 1.3520
10/06/2021 1.3535 1.3555 1.3515
09/06/2021 1.3535 1.3555 1.3515
08/06/2021 1.3420 1.3440 1.3400
07/06/2021 1.3461 1.3481 1.3441
04/06/2021 1.3425 1.3445 1.3405
03/06/2021 1.3408 1.3428 1.3388
02/06/2021 1.3386 1.3406 1.3366
01/06/2021 1.3302 1.3322 1.3282
31/05/2021 1.3272 1.3292 1.3252
28/05/2021 1.3287 1.3307 1.3267
27/05/2021 1.3217 1.3237 1.3197
26/05/2021 1.3284 1.3304 1.3264

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 2.7100 cents $1.2956 Magellan Annual Fund Distributions 2021
December 2020 2.7100 cents $1.2519  
June 2020 3.0000 cents $1.2528 Magellan Annual Fund Distributions 2020
December 2019 2.2000 cents $1.4829  
June 2019 2.2500 cents $1.4295 Magellan Annual Fund Distributions 2019
December 2018 1.5500 cents $1.2183  
June 2018 4.1662 cents $1.2622 Magellan Annual Fund Distributions 2018
December 2017 1.2000 cents $1.2802  
June 2017 10.2277 cents $1.2312 Magellan Annual Fund Distributions 2017
December 2016 1.0500 cents $1.1920  
June 2016 8.0891 cents $1.2386 Magellan Annual Fund Distributions 2016
December 2015 1.2000 cents $1.2006  
June 2015 2.0000 cents $1.1311 Magellan Annual Fund Distributions 2015
December 2014 0.9400 cents $1.1155  
June 2014 1.9500 cents $1.0333 Magellan Annual Fund Distributions 2014
December 2013 0.9100 cents $0.9364  
June 2013 1.9000 cents $0.8713 Magellan Annual Fund Distributions 2013

24 September 2020 – Distribution Policy Update - click here.

Invest now in the Magellan Infrastructure 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 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 infrastructure

  • Being a successful investor

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    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.

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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 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

Investor Login

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