Why global?

Investing in a Magellan fund starts with the question 'why invest in global equities?'.

Glossary

Why global investing?

By having limited exposure to global equities, Australian investors are restricting their investment opportunities.

A key question for many Australian investors is whether or not they should have the vast majority of their equity investments in Australian shares when 97% of the world’s listed companies are found overseas.

Clearly, by having limited exposure to global equities, Australian investors are restricting their investment opportunities. To benefit from the key investment trends that are likely to prevail over the next decade and beyond, we believe investors will need to boost their exposure to global businesses. Some of the key trends that we expect to be powerful forces in the years ahead include cloud computing, digital platforms, e-commerce, the cashless economy, the reach of global brands, the Chinese consumer, driverless cars, healthcare for an ageing population and artificial intelligence.

The Magellan approach

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.

Our Strategies

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.    
 

Global equity funds

Listed

Unlisted

Global infrastructure funds

Listed

Unlisted

Fund performance

30 Sep 2018
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 8.99% 17.07% 25.53% 12.01% 15.89% 19.23% 13.73% 12.15% 1/7/2007
Magellan Global Fund (Hedged) 6.82% 11.49% 16.47% 14.07% 12.54% 12.53% 1/7/2013
Magellan Global Equities Fund (Managed Fund) (ASX:MGE) 8.94% 17.00% 25.43% 12.10% 11.46% 2/3/2015
Magellan Global Equities Fund (Currency Hedged) (ASX:MHG) 6.88% 11.53% 16.39% 14.23% 10.87% 4/8/2015
Magellan Global Trust (ASX: MGG) 7.61% 14.14% 19.86% 18/10/2017
Magellan Infrastructure Fund - 0.16% 4.75% 5.74% 9.92% 12.67% 13.75% 11.33% 8.23% 1/7/2007
Magellan Infrastructure Fund (Unhedged) 1.21% 6.46% 10.22% 7.87% 14.03% 14.11% 1/7/2013
Magellan Infrastructure Fund (Currency Hedged) (ASX:MICH) - 0.13% 4.73% 5.72% 7.03% 19/7/2016
Magellan High Conviction Fund 6.64% 13.82% 22.53% 14.51% 17.78% 17.38% 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).

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