Magellan Global Fund

A core holding investing in 20 to 40 of the world’s best global stocks

  • Unlisted
  • Unhedged
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Invest in the world's best

  • Alibaba
  • Alphabet
  • Crown Castle
  • Starbucks
  • Microsoft
  • Tencent
  • Facebook
  • SAP
  • Reckitt Benckiser
  • Novartis

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 managers Structure Fund size **
Hamish Douglass & Arvid Streimann, CFA
Hamish Douglass
Arvid Streimann, CFA
Global Equity Fund, $AUD unhedged AUD $11,953.3 million
Management fee Distribution Frequency ARSN
1.35% Bi-annual 126 366 961
Buy / Sell Spread APIR Code
0.07%/0.07% MGE0001AU
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 a 10-year Australian Government Bonds). Additionally, the Performance Fees are subject to a high water mark.

Click here for further information on the benchmark.

All management costs described above are inclusive of the estimated net effect of GST.
** As at 30 September 2020.

Investment philosophy

The Magellan Global 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 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 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 2020

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

Click here for further information on the benchmark.

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). Fund Inception 1 July 2007.

30 September 2020
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
10 Years
(% PA)
Since Inception
(% PA)
Magellan Global Fund 3.42% 5.41% 7.41% 15.99% 11.80% 14.61% 16.41% 12.05%
Benchmark* 3.67% 10.00% 3.89% 11.04% 10.02% 12.54% 12.71% 6.45%
Out/Under Performance - 0.25% - 4.59% 3.52% 4.95% 1.78% 2.07% 3.70% 5.60%

* MSCI World Net Total Return Index (AUD)
** Inception date 01 July 2007

Click here for further information on the benchmark.

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).

Unit Prices

  
Date Net Asset Value Entry Exit
20/10/2020 2.7124 2.7143 2.7105
19/10/2020 2.6876 2.6895 2.6857
16/10/2020 2.7190 2.7209 2.7171
15/10/2020 2.7045 2.7064 2.7026
14/10/2020 2.6879 2.6898 2.6860
13/10/2020 2.7065 2.7084 2.7046
12/10/2020 2.6930 2.6949 2.6911
09/10/2020 2.6506 2.6525 2.6487
08/10/2020 2.6564 2.6583 2.6545
07/10/2020 2.6448 2.6467 2.6429
06/10/2020 2.6186 2.6204 2.6168
02/10/2020 2.6153 2.6171 2.6135
01/10/2020 2.6250 2.6268 2.6232
30/09/2020 2.6065 2.6083 2.6047
29/09/2020 2.6020 2.6038 2.6002
28/09/2020 2.6276 2.6294 2.6258
25/09/2020 2.6111 2.6129 2.6093
24/09/2020 2.5816 2.5834 2.5798
23/09/2020 2.5502 2.5520 2.5484
22/09/2020 2.5574 2.5592 2.5556
21/09/2020 2.5265 2.5283 2.5247
18/09/2020 2.5177 2.5195 2.5159
17/09/2020 2.5504 2.5522 2.5486
16/09/2020 2.5690 2.5708 2.5672
15/09/2020 2.5847 2.5865 2.5829
14/09/2020 2.5639 2.5657 2.5621
11/09/2020 2.5490 2.5508 2.5472
10/09/2020 2.5424 2.5442 2.5406
09/09/2020 2.5802 2.5820 2.5784
08/09/2020 2.5606 2.5624 2.5588
07/09/2020 2.5918 2.5936 2.5900
04/09/2020 2.5993 2.6011 2.5975
03/09/2020 2.6190 2.6208 2.6172
02/09/2020 2.6819 2.6838 2.6800
01/09/2020 2.6201 2.6219 2.6183
31/08/2020 2.6005 2.6023 2.5987
28/08/2020 2.6299 2.6317 2.6281
27/08/2020 2.6580 2.6599 2.6561
26/08/2020 2.6656 2.6675 2.6637
25/08/2020 2.6492 2.6511 2.6473
24/08/2020 2.6297 2.6315 2.6279
21/08/2020 2.6030 2.6048 2.6012
20/08/2020 2.5906 2.5924 2.5888
19/08/2020 2.5578 2.5596 2.5560
18/08/2020 2.5630 2.5648 2.5612
17/08/2020 2.5622 2.5640 2.5604
14/08/2020 2.5611 2.5629 2.5593
13/08/2020 2.5698 2.5716 2.5680
12/08/2020 2.5740 2.5758 2.5722
11/08/2020 2.5429 2.5447 2.5411

Distribution history

 

Date Distribution per unit Reinvestment price  
June 2020 10.5000 cents $2.5204 Magellan Annual Fund Distributions 2020
June 2019 11.7912 cents $2.4095 Magellan Annual Fund Distributions 2019
June 2018 16.1456 cents $2.1032 Magellan Annual Fund Distributions 2018
June 2017 4.8578 cents $1.9373 Magellan Annual Fund Distributions 2017
June 2016 15.2344 cents $1.7214 Magellan Annual Fund Distribution 2016
June 2015 24.3397 cents $1.8757 Magellan Annual Fund Distribution 2015
June 2014 5.9876 cents $1.6368 Magellan Annual Fund Distribution 2014
June 2013 3.2550 cents $1.5184 Magellan Annual Fund Distribution 2013

24 September 2020 – Distribution Policy Update - click here.

Invest now in the Magellan Global Fund

  1. Read the Product Disclosure Statement (PDS)

    On 21 October 2020 Magellan Asset Management Limited (‘Magellan’) as responsible entity of the Magellan Global Fund (‘MGF’) registered with ASIC the Notice of Meeting and Explanatory Memorandum (‘Explanatory Memorandum’) in relation to the proposed amendments to the MGF constitution (‘MGF Unitholder Resolutions’)  which forms part of the proposed restructure and simplification of Magellan’s Global Equities retail funds previously announced on 3 August 2020 (‘Restructure’). A copy of the Explanatory Memorandum is available at www.magellanfundrestructure.com.au.

    Please see the link below for further information regarding the Explanatory Memorandum, Magellan Directors’ recommendations, the MGF Partnership Offer and key dates.

    MGF Explanatory Memorandum registered with ASIC

    On 3 August 2020 Magellan announced a proposed restructure of three Global Equities retail funds. Please see below a link to the announcement and update to the PDS for Magellan Global Fund. 

    Proposed restructure announcement
    PDS update Magellan Global Fund
    - Proposed restructure presentation
    - Video presentation in relation to restructure proposal

  2. Complete the Application Form & CRS Form(s) (if applicable)
    You will be guided by the Application Form as to which CRS form(s) to complete.

  3. Send application form to Mainstream Fund Services
    Mainstream Fund Services - Unit Registry
    GPO Box 143
    Sydney NSW 2001

    Or Email the application form to magellanfunds@mainstreamgroup.com

    Temporary processes available during COVID-19

Speak with your adviser/broker. To find an adviser, visit Financial Planning Association of Australia (FPA) or Association of Financial Advisers (AFA).

New to Investing? Learn more about our global equities

  • Being a successful investor

    11 attributes we think lie behind Magellan’s long-term success in delivering competitive returns while protecting capital.

    Read article
  • Delivering outstanding results

    At Magellan, the key question we ask ourselves is: “What does the future look like?”. Our answer determines how we invest your money.

    Our global fund returns
  • Why global?

    The case for global investing rests largely on the belief that companies based outside Australia are expected to benefit the most from the key long-term shifts taking place all over the world.

    More on global investing

Investing with Magellan gives you easy access to outstanding global companies: Invest in the world's best.

Continuous Disclosure

24 September 2020 - Distribution Policy Update

On 24 September Magellan announced a distribution policy update for the funds for which it acts a responsible entity (‘Fund’ or ‘Funds’).

For each Fund, Magellan intends to target a specific cash distribution yield (“Target Cash Distribution”) and pay distributions semi-annually. Each Fund’s Target Cash Distribution per unit for each semi-annual period will be based on the average of the month-end net asset values per unit applicable to a Fund, or a Fund’s unit class, over a two year rolling period and will be announced at the beginning of each semi-annual distribution period.

This update harmonises the distribution policies across Magellan’s Funds and, Magellan believes, provides investors with greater certainty on the amount of upcoming cash distributions.

For further information and for the Target Cash Distribution per annum for each Fund, please click here.

FAQs

If you have chosen to receive communication via email, you will receive confirmation of your investment within 3 business days from when our unit registry (Mainstream Fund Services) has received your correctly completed Application Form (or notice of additional investment) and cleared application monies. Please note that if you choose to invest by cheque or request us to process a direct debit, it may take up to two business days (in the case of a cheque) and three business days (in the case of a direct debit) for your application monies to clear. If you have chosen to receive communication via mail, please allow for postage time on top of the 3 business days from receipt of your correctly completed Application Form (or notice of additional investment) and cleared application monies

During distribution periods (at the start of July and the start of January for some funds) receipt of your confirmation statement may be delayed by 10-15 business days.

A minimum initial investment of $10,000 and minimum subsequent investment of $5,000 applies to each of Magellan’s unlisted funds (except for Magellan High Conviction Class B which is a minimum initial investment of $100,000 and a minimum subsequent investment of $10,000).

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

Unlisted Funds

Mainstream Fund Services provides a range of registry services including the processing of applications, redemptions and distributions as well as the maintenance of unitholder records.

Please contact Mainstream Fund Services directly for assistance with:

  • Applications or redemptions
  • Change of contact details
  • Change of bank account details

Telephone 1300 127 780 (in Australia) +61 2 8259 8566 (International) 0800 787 621 (New Zealand)