Glossary

Active ETF

Magellan’s Active ETFs are actively managed investment funds that are quoted on ASX and can be bought and sold just like any other stock listed on ASX. These funds provide investors with easy access to the benefits of investing in global equities and the investment experience and expertise of Magellan.

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.

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.

ASX

Abbreviation for the Australian Securities Exchange.

ASX Ticker

Anything traded on ASX has an individual code that uniquely identifies it in an abbreviated form. You may be familiar with these codes which are displayed on ASX ticker boards and are included alongside company names in newspaper sharemarket tables.

Codes uniquely identify a tradeable instrument so that it can be tracked throughout trading, settlement and price reporting systems. These codes are important. 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.

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CHESS

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.

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Down market capture

Down market capture shows if a fund has outperformed a benchmark during periods of market weakness, and if so, by how much.

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Estimated NAV per Unit

Estimated Net Asset Value per Unit

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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.

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Hedged

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

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Index

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.

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Listed

A security traded on a stock exchange.

Listed investment trust

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

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MSCI World Index

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

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Passive investing

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

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Risk-adjusted returns

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

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Unhedged

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

Unlisted

Securities that are not traded on an exchange.

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