Active ETF

Magellan’s Active ETFs (Exchange-Traded Funds) are actively managed investment funds, which means an investment fund manager or investment team are making decisions about the underlying investment portfolio allocation. The ETFs are quoted on a securities exchange and can be bought and sold just like any other stock listed on an exchange. These funds provide investors with easy access to the benefits of investing in global equities and the investment experience and expertise of Magellan. Further information can be located on our Insights Section here.

Active investing

Active investing is a decision to hold securities at different weightings than an index with an aim to earn a superior risk-adjusted return. This strategy requires a hands-on approach, where investors actively manage and adjust their holdings based on market analysis, economic trends, and other relevant factors to capitalise on opportunities and mitigate risks.

AFSL License

Australian financial services licence. This is a legal licence required to conduct a financial services business.


Alpha refers to a measure of an investment's performance relative to a benchmark or index. This measure quantifies the excess return or underperformance of a portfolio in comparison to the expected return based on its level of risk.

APIR code

An APIR Code is a unique identifier issued by APIR® to participants and products within the Financial Services Industry.

ARSN code

ARSN (Australian Registered Scheme Number) ARSNs are issued to Managed Investment Schemes. The ARSN is a unique nine digit identifier, usually printed in three groups of three digits, and no two bodies can have the same ARSN.


Australian Securities & Investments Commission

Asset Allocation

This is the strategic distribution of a portfolio's investments among different asset classes. Asset allocation aims to achieve a balanced and diversified mix of investments, tailored to an investor's financial goals and risk tolerance.

Asset class

Refers to a group of securities with broad characteristics in common.  The most common major asset classes are shares, property and bonds.


Abbreviation for the Australian Securities Exchange.

ASX ticker

Anything traded on ASX has an individual code that uniquely identifies it in an abbreviated form.

Codes uniquely identify a tradeable instrument so that it can be tracked throughout trading, settlement and price reporting systems. These codes are important because whenever you make an order to buy or sell you will need to know the ASX code for the instrument you want to trade.

ASX sometimes uses a different length of ticker code to indicate to investors and traders that there is something different about a listed product.

A good rule to remember is that a 3 character code typically indicates the ordinary shares in a company – where there is more or less than 3 characters, there is most likely something different from the ordinary shares of a company.


Bear market

A bear market is as a period in which there is a decline in the prices of securities. It can mean a pessimistic market sentiment that may lead to widespread selling and low investor confidence. During a bear market, there can be economic uncertainty and negative market expectations, prompting a downward trend in stock prices and other financial assets.

Benchmark Index

This is a measure used to assess the performance of a portfolio or investment strategy. It typically consists of a specific set of securities that mirrors a particular market or sector, providing a benchmark against which investors can evaluate their own portfolio's returns.

Bull market

A bull market is a period in which prices of securities rise. It can mean an optimistic market sentiment that may encourage widespread buying and high investor confidence. In a bull market, positive economic outlooks and expectations may drive an upward trend in stock prices and other financial assets.

Business Days(s)

The days identified by the Securities Exchange Operator in the Securities Exchange Rules. For the purposes of calculating Fees and Costs only, Business Day includes a day on which the primary securities exchange for any security that forms part of the Fund’s property is open for trading.



The value of an investment in a business or property, represented by the difference between the value of total assets less total liabilities.

Capital Gain

Capital gain is the profit made when an investor sells an investment for more than what they paid for it. It is the increase in the value of an asset over time, measured by the positive difference between the selling price and the initial purchase cost.

Capital gains distribution

This is a payment by a fund to investors, when a fund has sold a security in its portfolio and is has been sold for more than its original price. There are short-term and long-term gains. Short-term gains include gains on securities held for one year or less, while long-term gains include gains on securities held for more than a year.

Capital growth

Capital growth is the increase in the value of an investment over time. It is measured by the positive change in the market price or market value of an asset, such as stocks or other securities.


Clearing House Electronic Sub-register System, the Australian settlement system for equities and other issued products traded on ASX and other exchanges. CHESS is owned by ASX.

Compound returns

A return, usually expressed as a percentage, that shows the gain over time where returns are earned on top of earlier returns.


Declaration date

The date that a company or fund announces the next dividend or distribution payment to investors.

Distribution Reinvestment Plan (DRP)

A distribution reinvestment plan (DRP) is the process where investors can use their distributions to obtain additional units in the Fund. This allows investors to accumulate more units over time and potentially benefit from compounding returns. More info


Distributions are payments made by a ‘Fund’ like a managed fund or an exchange-traded fund (ETF) to an investor. The Fund may receive the dividend payment from the companies it is invested in, this then typically forms part of a distribution paid to investors by the Fund. A Fund distribution can include dividends, interest and foreign income for example. The Fund may also make gains or losses on investments sold. The Fund may also offer a distribution reinvestment plan, where an investor can elect to buy more units in the Fund rather than taking a cash distribution. More info

Dividend payment date

The date an investor is paid their dividend. More info


Dividends are payments by a company out of its profits to investors who own shares in the company. A dividend is usually paid in the form of cash or in additional shares of the company. More info


Earning Per Share (EPS)

This is a measure that shows how much profit a company makes for each share of its stock. It is calculated by taking the company's total profit (net income) and dividing it by the number of shares that investors own.


ESG stands for Environmental, Social, and Governance. Understanding ESG factors can provide information that investors can use to evaluate the sustainability and ethical impact of an investment in a company.

Estimated NAV per unit

This is the calculated value of each unit in an exchange-traded fund (ETF) based on the assets current market value minus its liabilities.


Fundamental analysis

This is the process of evaluating the underlying value of a security and is done by analysing various economic, financial, and qualitative factors of a company. Fundamental analysis can help investors to determine whether a security is overvalued, undervalued, or fairly priced in the market.


Global equity funds

Magellan’s global equity funds offer investors the opportunity to invest in a focused portfolio of global equity companies.

Global infrastructure funds

Magellan’s global infrastructure funds offer investors the opportunity to in a specialised and focussed global listed infrastructure portfolio.



This is a strategy or investment that is undertaken to reduce the risk of adverse price movements in investments such as currency. The goal of hedging is to protect an investment from potential losses by taking a counterbalancing position.


When measures are taken to remove the effects movements in currencies may have had on investments.


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.


ICE iNav

Intraday indicative NAV provided by ICE Data Indices, LLC.


Used to measure the performance of an asset class or market. With stock markets, an index comprises a represented sample of stocks on the market, with weighting given to the largest stocks by market capitalisation.


Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in the purchasing power of a currency.

Infrastructure Investments

Investing in infrastructure is about investing in the companies that provide essential services to society, and earning predictable, reliable returns in the process. As it is traditionally defined, infrastructure typically refers to large, tangible assets that deliver essential services.

Initial public offering (IPO)

An IPO is when a private company offers its shares to the public for the first time which then means they become a publicly traded company. When an IPO takes place, the company issues new shares to investors and these shares are then traded on a stock exchange.

Interest rate

This is the cost of borrowing money or the return earned on an investment.



A security traded on a stock exchange. More info

Listed investment trust

A closed-ended investment vehicle, listed on the stock exchange.


Market Capitalisation

This is also referred to as market cap and is a measure of the total value of a company's outstanding or issued and owned shares of stock in the open market.

Market Price

This is the current price at which an asset can be bought or sold in the open market.

MSCI world index

A commonly used benchmark for global shares. It comprises about 1,600 stocks predominantly found on developed stock exchanges.


Net Asset Value (NAV)

This is the total value of a fund's assets minus its liabilities and divided by the number of outstanding shares. It provides insight into a fund's per-share value and is a reference point for buying or selling shares.


Open-ended fund

An open-ended fund is one where, in addition to investors trading with each other on the exchange, new units can be created in the fund as new investors buy in. Similarly, if investors exit, then units can be cancelled. The fund grows and contracts based on investor activity plus investment returns. More info


When a fund’s performance is higher than the performance of an index, competitor or any other benchmark.


Passive investing

Holding securities at equal weighting to an index with an aim to match the performance of that index.

Price/earnings (P/E) ratio

A P/E ratio compares a company's current share price to its per-share earnings. It is a ratio used to understand the relative value of a stock and make comparisons across different companies or industries.

Primary market

The primary market is where securities, such as stocks are created and initially sold to investors.

Proxy voting

Proxy voting is a way for shareholders to exercise their voting rights on various decisions being made by a company they are invested in, especially when they cannot attend a shareholder meeting.


Qualitative analysis

This is non-numerical analysis and involves researching and understanding the qualities, characteristics, and contextual factors of a company, industry, or financial market.

Quantitative analysis

This is mathematical and statistical analysis used to analyse financial markets and assess investment opportunities.



Rebalancing is when a portfolio's asset allocation is reviewed and adjusted to bring it back to its original target allocation.

Record date

The official date on which a shareholder must own shares in a company in order to receive dividend payments or units in a fund in order to receive distribution payments. More info


Reinvestment is when an investor uses the returns generated from an investment, such as dividends to purchase additional securities or assets. Reinvestment is a strategic approach aimed at maximising the potential for compounding returns over time.

Risk tolerance

Risk tolerance is the amount of risk that an investor is willing to accept in order to achieve their investment goals. Below is an example of three risk tolerance profiles and how they could impact investment decision making.

Conservative: Willing to sacrifice/forego the potential for higher long term returns in order to protect capital

Moderate: Prepared to accept a moderate level of risk to achieve long term returns

Aggressive: Willing to tolerate risk and volatility to maximise investment returns

Generally, if an investor has a longer time horizon to accumulate wealth they can tolerate more risk, compared to an investor nearing or in retirement. Investors will have different time horizons based on their individual investment goals. More info

Risk-adjusted returns

Measuring returns according to how much risk was taken to achieve that return.


Secondary Market

The secondary market is a financial marketplace where existing or pre-owned securities are bought and sold by investors and not issued directly by the issuing company or government.


Securities refers to a financial instrument that represents ownership of a financial value such as stocks.

Single unit structure

The Single Unit Fund Structure is a Magellan innovation that enables investors to access an open-ended fund, either off-market via an application form to the Responsible Entity or on-market via an online share trading platform or stockbroker account. More info

Solactive iNav

Intraday indicative NAV provided by Solactive AG.


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.

Standard deviation

Standard deviation is a statistic that measures the amount of variation of investment return from its average or mean. It is often used as a measure of risk or volatility.

Stock exchange

A stock exchange is a centralised marketplace or platform where stocks and other securities, are bought and sold by investors.


Tracking error

Tracking error is a measure that shows the deviation between the performance of an investment and its benchmark index.



When no measures are taken to remove the effects movements in currencies may have had on investments.

Unit Registry

A Unit registry provides Fund Managers assistance with managing and maintaining their investor records as required by the Corporations Act 2001. 

Unit Trust

This is an investment that allows multiple investors to pool together money to invest in a portfolio. It is usually managed by a professional fund manager.


Securities that are not traded on an exchange.



Valuation is the process of determining the true value of a financial asset. It involves assessing factors like the asset's earnings, growth potential, and comparing it to similar assets in the market to understand whether it is priced reasonably.



Yield is the income generated by an investment, typically in the form of interest or dividend payments.

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