Magellan Global Fund

A core holding investing in 20 to 40 of the world’s best global stocks

  • Unlisted
  • Unhedged
Invest Now

Invest in the world's best

  • Mastercard
  • HCA Holdings Inc
  • Alphabet
  • Apple
  • Facebook
  • Kraft Heinz
  • Lowes
  • Microsoft
  • Starbucks
  • VISA

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 Inception date Fund size **
Hamish Douglass
Hamish Douglass
Global Equity Fund, $AUD unhedged 1 July 2007 AUD $10,167.2 million
Management fee Distribution Frequency ARSN
1.35% Annually 126 366 961
Buy / Sell Spread APIR Code
0.07%/0.07% MGE0001AU
Benchmark
MSCI World Net Total Return Index (AUD)
Performance Fee

10.0% of excess return over the higher of the Index Relative Hurdle (MSCI World Net Total Return Index (AUD)) and the Absolute Return Hurdle (the yield of a 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 30 September 2018.

Investment philosophy

The Magellan Global Fund seeks to invest in outstanding companies at attractive prices, while exercising a deep understanding of the macroeconomic environment to manage investment risk.

Magellan perceives outstanding companies to be those that are able to sustainably exploit competitive advantages in order to continually earn returns on capital that are materially in excess of their cost of capital.

While Magellan is extremely focused on fundamental business value, it is not a typical ’value’ investor. The Magellan Global Fund will invest in companies that have relatively high price-to-earnings and price-to-book multiples, provided that their businesses are outstanding and their shares are trading at an appropriate discount to their assessed intrinsic value. Equities that appear undervalued on the basis of a low price-to-earnings or price-to-book multiples will often prove to be poor investments if the underlying business is fundamentally weak and exhibits poor returns on capital.

Magellan focuses on risk-adjusted returns, rather than benchmark-relative returns. As a result, the Magellan Global Fund’s investment process is designed to generate an unconstrained, concentrated portfolio of high-quality companies.

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 Global Fund’s investment process integrates three key disciplines:

Intensive bottom-up stock analysis and industry research is undertaken in order to identify outstanding companies. This involves the assessment of potential investments against key quality criteria, as well as assessments of their intrinsic value. Magellan uses a proprietary ranking tool, the Magellan Conviction Scoring Matrix, to rank these companies based on these factors. This process enables the portfolio to be weighted towards higher conviction ideas (on a risk-adjusted basis).

Magellan’s detailed macroeconomic analysis is overlayed during portfolio construction, alongside the application of both fixed and dynamic risk limits. This process ensures that the portfolio is not overly exposed to aggregation risk (risk which arises from correlated portfolio positions) or macroeconomic event risk. Macroeconomic event risk can be a significant source of negative returns for investors. Magellan will make significant changes to the portfolio if it believes that macroeconomic events could lead to significant and sustained loss in value for investors. Such events would include a financial crisis, a sustained oil price shock, a global pandemic or a major global conflict.

Performance

Growth of AUD $10,000
31 October 2018

** MSCI World Net Total Return Index (AUD).

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.

31 October 2018
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
10 Years
(% PA)
Since Inception
(% PA)
Magellan Global Fund 3.94% 12.04% 16.38% 9.43% 14.83% 18.91% 13.31% 11.78%
Benchmark* - 1.06% 4.20% 9.44% 8.15% 13.18% 16.22% 9.24% 5.87%
Out/Under Performance 5.00% 7.84% 6.94% 1.28% 1.65% 2.69% 4.07% 5.91%

* MSCI World Net Total Return Index (AUD)
** Inception date 01 July 2007

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 relvant 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
19/11/2018 2.1416 2.1431 2.1401
16/11/2018 2.1749 2.1764 2.1734
15/11/2018 2.1861 2.1876 2.1846
14/11/2018 2.1850 2.1865 2.1835
13/11/2018 2.1951 2.1966 2.1936
12/11/2018 2.1971 2.1986 2.1956
09/11/2018 2.2205 2.2221 2.2189
08/11/2018 2.2205 2.2221 2.2189
07/11/2018 2.2263 2.2279 2.2247
06/11/2018 2.2046 2.2061 2.2031
05/11/2018 2.1974 2.1989 2.1959
02/11/2018 2.1955 2.1977 2.1933
01/11/2018 2.2106 2.2128 2.2084
31/10/2018 2.2310 2.2332 2.2288
30/10/2018 2.1950 2.1972 2.1928
29/10/2018 2.1893 2.1915 2.1871
26/10/2018 2.2042 2.2064 2.2020
25/10/2018 2.2325 2.2347 2.2303
24/10/2018 2.1995 2.2017 2.1973
23/10/2018 2.2497 2.2519 2.2475
22/10/2018 2.2453 2.2475 2.2431
19/10/2018 2.2356 2.2378 2.2334
18/10/2018 2.2298 2.2320 2.2276
17/10/2018 2.2639 2.2662 2.2616
16/10/2018 2.2592 2.2615 2.2569
15/10/2018 2.2163 2.2185 2.2141
12/10/2018 2.2328 2.2350 2.2306
11/10/2018 2.2043 2.2065 2.2021
10/10/2018 2.2376 2.2398 2.2354
09/10/2018 2.3062 2.3085 2.3039
08/10/2018 2.3027 2.3050 2.3004
05/10/2018 2.3090 2.3113 2.3067
04/10/2018 2.3121 2.3144 2.3098
03/10/2018 2.3120 2.3143 2.3097
02/10/2018 2.2919 2.2942 2.2896
28/09/2018 2.2921 2.2944 2.2898
27/09/2018 2.3010 2.3033 2.2987
26/09/2018 2.2814 2.2837 2.2791
25/09/2018 2.2838 2.2861 2.2815
24/09/2018 2.2750 2.2773 2.2727
21/09/2018 2.2737 2.2760 2.2714
20/09/2018 2.2772 2.2795 2.2749
19/09/2018 2.2602 2.2625 2.2579
18/09/2018 2.2749 2.2772 2.2726
17/09/2018 2.2777 2.2800 2.2754
14/09/2018 2.2909 2.2932 2.2886
13/09/2018 2.2898 2.2921 2.2875
12/09/2018 2.2984 2.3007 2.2961
11/09/2018 2.3131 2.3154 2.3108
10/09/2018 2.2929 2.2952 2.2906

Distribution history

 

Date Distribution per unit Reinvestment price  
June 2018 16.1456 cents $2.1032 Magellan Annual Fund Distributions 2018
June 2017 4.8578 cents $1.9373 Magellan Annual Fund Distributions 2017
June 2016 15.2344 cents $1.7214 Magellan Annual Fund Distribution 2016
June 2015 24.3397 cents $1.8757 Magellan Annual Fund Distribution 2015
June 2014 5.9876 cents $1.6368 Magellan Annual Fund Distribution 2014
June 2013 3.2550 cents $1.5184 Magellan Annual Fund Distribution 2013

Invest now in the Magellan Global 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

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

New to Investing? Learn more about our global equities

  • Being a successful investor

    11 attributes we think lie behind Magellan’s long-term success in delivering competitive returns while protecting capital.

    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.

    More on global investing

Investing with Magellan gives you easy access to outstanding global companies: Invest in the world's best.

FAQs

A minimum initial investment of $10,000 and minimum subsequent investment of $5,000 applies to each of Magellan’s unlisted funds.

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)