Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) (ASX:MICH)

An ASX-listed Active ETF holding 20 to 40 stocks that seeks to deliver the stable returns offered by the asset class, while protecting returns from currency movements

  • Listed
  • Hedged
  • Active ETF
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  • Atmos Energy Corp
  • GetLink
  • Aeroports de Paris
  • American Tower
  • Atlantia SpA
  • Crown Castle
  • Enbridge Inc
  • Macquarie Atlas Roads
  • Sempra Energy
  • Transurban Group

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 ** ASX Ticker Intraday Indicative Nav*
Gerald Stack
Gerald Stack
Infrastructure Fund, $AUD hedged 19 July 2016 AUD $168.3 million MICH Ticker Details
Prices Units Indicative NAV
Bloomberg MICH AU Equity MICHIV.Index
Thomson Reuters MICH.AX MICHin.IDCC
IRESS MICH.AXW MICHNAV.ETF
 
Stock Exchange Announcements
www.asx.com.au MIC  
Management & Administration fee Distribution Frequency ARSN code
1.05% Bi-annual 612 467 580
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.

All management costs described above are inclusive of the estimated net effect of GST.

* The iNAV reflects the estimated NAV per Unit updated in respect of the Fund’s portfolio stocks that have live market prices during the ASX Trading Day and for foreign exchange movements to the extent that the impact is not offset by the hedging of the Fund’s foreign currency exposure.

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

The Magellan Infrastructure Fund (Currency Hedged) has been designed to provide investors with efficient access to the infrastructure asset class, while protecting capital in adverse markets.

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 (Currency Hedged) 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 (Currency Hedged) 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 April 2018

** The index is the S&P Global Infrastructure Index A$ Hedged Net.

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 19 July 2016.

30 April 2018
Performance 3 Months 6 Months 1 Year Since Inception
(% PA)
Magellan Infrastructure Fund (Currency Hedged) (ASX:MICH) 1.13% 0.97% 6.61% 7.60%
Benchmark* - 2.16% - 3.38% 2.25% 5.85%
Out/Under Performance 3.30% 4.35% 4.37% 1.75%

* The index is the S&P Global Infrastructure Index A$ Hedged Net.

Fund Inception 19 July 2016.

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).

Estimated NAV per Unit

Distribution history

Date Distribution per unit Reinvestment price  
June 2017 4.8800 cents $2.6580 Magellan Annual Fund Distributions 2017
December 2016 1.2500 cents $2.4177  

Invest now in the Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) (ASX:MICH)

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FAQs

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.

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

  • ASX announcements under each ASX code;
  • Estimated 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.

There is no minimum investment.

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

Active ETFs

Magellan has appointed LINK Market Services Limited to provide unit registry services for Magellan's Active ETFs. To manage your unitholding including:

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

Please visit LINK at www.linkmarketservices.com.au using your Investor Login or use the contact details provided.

 

Contact Us

Emma Armstrong, Key Account Manager

 Telephone +61 2 9235 4956

 Email Emma.Armstrong@magellangroup.com.au