Investing in a Magellan fund starts with the question 'why invest in global equities?'.
Consider tying your financial fate to the world’s best companies.
Australians have heavily tied their financial fates to Australian equities. Australian stocks have certainly proved to be good investments over the past two decades. The industrialisation of China boosted commodity prices, which has helped Australia’s economy expand continuously since the early 1990s. Our banks and mining stocks, in particular, thrived.
But is that the future? China’s rise shows no sign of stopping but its leaps are likely to be centred on services and not the manufacturing that needs our commodities. As they become wealthier, emerging-market consumers are buying global brands. Amazon.com and other internet-based companies are shaking up traditional retailing. Social media is expanding. The Google and Apple consumer digital platforms will become more entrenched. 3D printing, robots, driverless cars and other forms of artificial intelligence are taking hold. Concerns about climate change are prompting a shift to a low-carbon world.
The case for investing in global equities rests largely on the premise that companies based outside Australia are likely to benefit the most from these shifts.
Australia has some wonderful companies but many are not well placed for the future that we envisage.
That’s no surprise because 97% of the world’s listed companies are found overseas. Alphabet (the owner of Google), Apple, eBay, Facebook and Microsoft are world leaders in their fields that have no equivalents on the ASX. Nor, too, do Amazon.com, McDonald’s, Oracle, PayPal or Starbucks to name other foreign stars. Australians are familiar with these names because we use their products and services all the time.
Worthwhile companies to own for the long term will generally possess some form of Warren Buffett’s fabled ‘economic moat'
As an active investor, we believe that successful investing is about finding, and owning for the long term, companies that can generate excess returns for years to come. We do not look for stocks that might come into short-term favour on stock markets.
The worthwhile companies to own for the long term will generally possess some form of Warren Buffett’s fabled ‘economic moat’. This term is how Buffett describes a company’s sustainable advantage over competitors that enable a business to earn superior returns that are well above the cost of capital. The pick of these high-quality companies can expand their businesses in the same profitable fashion.
We seek to own such stocks and let compound returns work their magic over time. Even a return on capital that is just a few percentage points higher than that delivered by competitors will create vastly more shareholder value as years go by.
Our investment team seeks to find such stocks by conducting company analysis that we like to think is ‘an inch wide and a mile deep’.
On top of that, we conduct macroeconomic analysis and risk management to construct a portfolio that aims to generate attractive returns over the medium to long-term. Importantly, we seek to invest in a way that reduces the risk of permanent capital loss.
Since we started, our award-winning and highly rated global and infrastructure strategies have delivered attractive returns for clients.
Magellan manages global equity and global infrastructure funds. Within each category, we offer listed and unlisted options, where the listed options are listed investment trusts or active ETFs found on the ASX. Within each category, we offer options where returns in Australian dollars are hedged or unhedged.
Our global equity funds are designed as core options for investors who would like to achieve attractive risk-adjusted returns over the medium to long term, while reducing the risk of permanent capital loss.
Our global infrastructure funds are designed for investors who seek to benefit from the stable earnings, inflation protection and lower risk of capital losses offer by the asset class.
|Fund||3 Months||6 Months||1 Year||3 Years (% pa)||5 Years (% pa)||7 Years (% pa)||10 Years (% pa)||Since Inception (% pa)||Inception date||Chart|
|Magellan Global Fund||0.55%||3.87%||10.22%||8.95%||15.92%||17.67%||13.00%||11.19%||1/7/2007|
|Magellan Global Fund (Hedged)||- 5.59%||1.91%||10.90%||8.58%||11.26%||1/7/2013|
|Magellan Global Equities Fund (Managed Fund) (ASX:MGE)||0.52%||3.84%||10.21%||9.03%||8.17%||2/3/2015|
|Magellan Global Equities Fund (Currency Hedged) (Managed Fund) (ASX:MHG)||- 5.61%||1.87%||10.94%||8.43%||4/8/2015|
|Magellan Global Trust (ASX: MGG)||- 1.17%||3.02%||5.95%||18/10/2017|
|Magellan Infrastructure Fund||1.17%||1.02%||6.64%||8.89%||12.14%||12.84%||9.60%||8.37%||1/7/2007|
|Magellan Infrastructure Fund (Unhedged)||4.88%||3.02%||8.39%||8.82%||14.68%||1/7/2013|
|Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) (ASX:MICH)||1.13%||0.97%||6.61%||7.60%||19/7/2016|
|Magellan High Conviction Fund||- 2.70%||2.99%||12.10%||10.65%||16.12%||1/7/2013|
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).
You can invest in any of our funds through the following three options:
You can trade our listed funds via your own online share trading platform and for our unlisted funds you can download the PDS and application form and return via mail.
Just click below in Ready to Invest to access the PDS for the fund you are interested in.
You can contact your stock broker to trade our listed funds and access our unlisted funds. Click to find a stockbroker at www.asx.com.au
You can contact your financial adviser to trade our listed funds and access our unlisted funds. Click to find a financial adviser at www.fpa.com.au
Select the Fund below to find out more information on how you can invest.