Magellan Global Trust (ASX: MGG)

An ASX-listed trust investing in 15 to 35 of the world's best global stocks whilst targeting a 4% cash distribution yield

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Invest in the world's best

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

Investment objectives

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

While minimising the risk of permanent capital loss

Fund facts

Portfolio managers Structure Fund size ** ASX Ticker Intraday Indicative Nav*
Hamish Douglass & Stefan Marcionetti
Hamish Douglass
Stefan Marcionetti
Global Equity Fund, $AUD AUD $1,641.7 million MGG Ticker Details
  Units Indicative NAV
IRESS MGG.AXW MGGINAV.ETF
Bloomberg MGG AU EQUITY MGGIV INDEX
Thomson Reuters MGG.AX MGGAUiv.P
Management & Administration fee Distribution Frequency ARSN code
1.35% Bi-annual 620 753 728
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 10-year Australian Government Bonds). Additionally, the performance fees are subject to a high water mark.

All fees are inclusive of the estimated net effect of GST.

The iNAV reflects the estimated NAV per Unit updated for foreign exchange movements in the Fund's portfolio stocks by individual stock domicile and is also updated in respect of stocks that have live market prices during the ASX Trading Day. If there are no stocks held by the Fund that have live market prices during the ASX Trading Day, movements in the iNAV will only reflect foreign exchange movements. The iNAV will not be updated for market-based movements such as movements in stock market indices. 

iNAV calculations as shown on www.magellangroup.com.au (the “data”) provided by ICE Data Indices, see ICE Terms of Use, and is updated during ASX trading hours. Powered by Factset. iNAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN.  IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose. 

** As at 30 April 2018.

Investment philosophy

Magellan seeks to invest in a focussed portfolio of outstanding global companies and seeks to purchase investments when they are trading at a discount to their assessed intrinsic value.

Magellan undertakes extensive fundamental analysis on the individual companies and the industries in which they operate.

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

Magellan also undertakes detailed macroeconomic analysis in order to take advantage of mis-pricing of economic cycles to manage investment risk. Magellan is able to invest up to 50% of the Magellan Global Trust's gross assets in cash and cash equivalents.

Magellan focuses on generating attractive absolute returns over the medium to long term. The Investment Strategy is benchmark agnostic as the strategy has few similarities to market benchmarks or share market indices. Magellan is focussed on delivering attractive risk adjusted returns over the medium to long term whilst minimising the risk of a permanent capital loss, rather than benchmark-relative returns.

The Portfolio will typically comprise 15 to 35 investments. The Magellan Global Trust may also manage its foreign currency exposure arising from investments in overseas markets.

Portfolio construction

The Magellan Global Trust'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
30 April 2018

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

Calculations are based on the monthly ASX released net asset value with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Fund Inception 18 October 2017.

30 April 2018
Performance 3 Months 6 Months Since Inception
(% PA)
Magellan Global Trust (ASX: MGG) - 1.17% 3.02% 5.95%
Benchmark* 1.74% 5.03% 7.80%
Out/Under Performance - 2.91% - 2.01% - 1.85%

* MSCI World Net Total Return Index (AUD).

Fund Inception 18 October 2017.

Estimated NAV per Unit

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FAQs

There is no minimum investment.

We seek to be transparent with our clients and are making the following disclosures in relation to the our listed funds:

  • ASX announcements under the ASX code MGG;
  • Net Asset Value ("NAV") per Unit published on Magellan’s website daily;
  • Indicative intra-day NAV per Unit ("iNAV") published on Magellan's website daily and which is updated throughout the ASX trading day;
  • Monthly fund factsheets on Magellan's website and ASX; and
  • The full portfolio on a quarterly basis with a delay period of no longer than two months on Magellan's website and ASX.

Magellan intends to target a cash distribution yield of 4% per annum based on the average month-end NAV per Unit over a two-year rolling period (“Target Cash Distribution”).

Magellan will announce Magellan Global Trust’s Target Cash Distribution per Unit on ASX at the beginning of each semi-annual distribution period. Magellan expects that the distribution policy will provide unitholders with greater certainty about the value of upcoming distributions.

Where net income exceeds the targeted yield of 4% per annum, Magellan intends that the portion of any distribution in excess of the Target Cash Distribution will be required to be reinvested as additional Units in Magellan Global Trust.

Distributions will be paid semi-annually.

Yes, in respect of each Target Cash Distribution, Magellan may offer a DRP at its discretion.  Magellan intends to offer Unitholders who elect to participate in the DRP in respect of the Target Cash Distribution an issue price which is set at a 5% discount to the prevailing NAV per Unit.  As an additional benefit to Unitholders and to ensure that Unitholders who elect not to participate in the DRP suffer no dilution as a result of the DRP discount, the Magellan Group will pay Magellan Global Trust an amount of consideration equal to the cost of this discount.

To elect to participate in the DRP, please contact the unit registry Boardroom on 1300 737 760 or log on to their secure website at www.investorserve.com.au

The Magellan Global Trust is listed on ASX, however is a closed-ended listed investment trust, not an Active ETF.

Important Information: Units in the Magellan Global Trust (Fund) 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, the amount or timing of any return from it, or that it will achieve its investment objective. This material has been provided for general information purposes and must not be construed as investment advice. This material has been prepared without taking 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) prior to making any investment decisions. The PDS is available at www.magellangroup.com.au or can be obtained by calling 02 9235 4888.

Unit Registry Enquiries

Magellan Global Trust

Magellan has appointed Boardroom Pty Limited to provide unit registry services for the Magellan Global Trust. To manage your unitholding including:

  • Change your contact details
  • Update your bank details
  • Change your DRP election

Please visit Boardroom at www.boardroomlimited.com.au using your InvestorServe login or use the contact details provided.

Telephone 1300 737 760 (in Australia) +61 2 9290 9600 (International)

Fax 1300 653 459

Contact Us

Emma Armstrong, Key Account Manager

 Telephone +61 2 9235 4956

 Email Emma.Armstrong@magellangroup.com.au

Contact us