Magellan Global Equities Fund (Managed Fund) (ASX:MGE)

An ASX-listed Active ETF investing in 20 to 40 of the world’s best global stocks

  • Listed
  • Unhedged
  • Active ETF
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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 manager Structure Fund size ** ASX Ticker Intraday Indicative Nav*
Hamish Douglass
Hamish Douglass
Global Equity Fund, $AUD unhedged AUD $1,180.8 million MGE Ticker Details
  Units Indicative NAV
Bloomberg MGE AU EQUITY MGEIV INDEX
Thomson Reuters MGE.AX MGEin.IDCC
IRESS MGE.AXW MGENAV.ETF
Management & Administration fee Distribution Frequency ARSN
1.35% Annually 603 395 302
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 management costs described above 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 31 August 2018.

Investment philosophy

The Magellan Global Equities 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 Equities 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 Equities 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
30 September 2018

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

Calculations are based on NAVs, published in the MGE ASX announcements, with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Fund Inception 2 March 2015.

30 September 2018
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
Since Inception
(% PA)
Magellan Global Equities Fund (Managed Fund) (ASX:MGE) 8.94% 17.00% 25.43% 12.10% 11.46%
Benchmark* 7.20% 13.22% 20.63% 12.42% 10.54%
Out/Under Performance 1.74% 3.78% 4.80% - 0.32% 0.92%

* MSCI World Net Total Return Index (AUD)
** Inception date 02 March 2015

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 2018 9.6178 cents $3.2292 Magellan Annual Fund Distributions 2018
June 2017 5.0000 cents $2.7687 Magellan Annual Fund Distributions 2017
June 2016 5.0000 cents $2.4694 Magellan Annual Fund Distributions 2016
June 2015 1.5000 cents $2.6916 Magellan Annual Fund Distributions 2015

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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