Magellan Global Equities Fund

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The Magellan Global Equities Fund is a renowned investment option that provides investors with exposure to a diversified portfolio of international stocks. Managed by Magellan Asset Management, a leading global investment firm based in Australia, this fund aims to achieve long-term capital growth by investing in high-quality companies from around the world.

Magellan Global Equities Fund

What is the Magellan Global Equities Fund?

The Magellan Global Equities Fund (Currency Hedged) is an ASX-listed Active ETF that aims to invest in 20 to 40 of the world’s best global stocks while hedging returns from currency movements. Managed by Arvid Streimann, CFA, and Nikki Thomas, CFA, the fund seeks attractive risk-adjusted returns over the medium to long term. Its benchmark is the MSCI World Net Total Return Index (hedged to AUD). The fund’s inception date was August 4, 2015, and its current size stands at $106.5 million (as of May 31, 2024). Here are the key details:

  • Investment Objective:
    • The fund seeks attractive risk-adjusted returns over the medium to long term while minimizing the risk of permanent capital loss.
    • It aims to deliver 9% p.a. net of fees over the economic cycle.
  • Fund Overview:
    • Inception Date: August 4, 2015
    • Fund Size: $106.5 million (as of May 31, 2024)
    • ASX Ticker: MHG
    • Benchmark: MSCI World Net Total Return Index (hedged to AUD)
  • Portfolio Managers:
    • Arvid Streimann, CFA
    • Nikki Thomas, CFA
  • Management Fees:
    • 1.35% (inclusive of GST)
  • Performance Fee:
    • 10.0% of excess return over the higher of the Index Relative Hurdle (MSCI World Net Total Return Index, hedged to AUD) and the Absolute Return Hurdle (yield of 10-year Australian Government Bonds).
    • Subject to a high-water mark.
  • Investment Risks:
    • All investments carry risk.
    • Transaction costs may apply.

Investment Strategy

The fund’s investment strategy revolves around selecting companies with strong competitive advantages, sustainable business models, and attractive growth prospects. The fund managers conduct in-depth research and analysis to identify companies that they believe will outperform over the long term. The portfolio is constructed with a focus on quality, growth, and risk management.

Top Holdings

The fund’s portfolio typically includes a mix of well-known multinational companies with strong fundamentals. Some of the top holdings may include technology giants like Apple and Microsoft, consumer staples companies like Nestle and Procter & Gamble, and healthcare leaders like Johnson & Johnson. These companies are selected based on their competitive positioning, financial strength, and growth prospects.

Performance and Track Record

The Magellan Global Equities Fund has a solid track record of delivering competitive returns to investors over the long term. While past performance is not indicative of future results, the fund’s consistent performance and focus on quality investments have attracted investors seeking exposure to global equities. Investors can track the fund’s performance through regular updates and reports provided by Magellan Asset Management.

Conclusion

The Magellan Global Equities Fund is a well-managed fund that has a strong track record of performance. The fund is suitable for investors who are looking for a long-term investment in global equities.

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