Magellan Global Trust (ASX: MGG) is a global fund that which offers two different strategies for the clients. One is their global equity product where the company invests in some of the best companies in the world, and another is a global listed infrastructure product which is created to generate inflation-protected, stable yet solid returns. Currently, the company is one of the top 100 companies by market value on the ASX.
On 12th April 2019, the company announced its fund update for the March 2019. The fund is a listed investment trust which is managed by Hamish Douglass and Stefan Marcionetti as portfolio managers. Since inception date of 18th October 2017, the fund has grown to A$2,131.5 million with an average price of A$1.7221 per unit. The management and administration fee is 1.35% per annum
Some of the features of the fund;
- It is actively managed global equities fund
- The cash distribution target of the fund is a yield of 4% per annum which is paid semi-annually
- It also has an attractive distribution reinvestment plan with a 5% discount to the net asset value (NAV) per Unit in respect of the target cash distribution.
- The fund also has currency exposure which is currently 44% hedged to the Australian dollar.
- Units of the fund can be bought or sold on the ASX like any other listed security, and the settlement will take place via ASX’s CHESS.
The top 5 shareholdings of the fund as of 31st March 2019 are
- Alphabet Inc – 7.7%
- Facebook Inc-A – 7.1%
- Microsoft Corp – 7.1%
- Starbucks Corp – 6.2%
- Apple Inc – 6.1%
Apart from this the fund also holds Visa Inc, HCA Healthcare Inc, MasterCard Inc, Oracle Corp, Yum! Brands Inc etc. as their high allocation holdings. Considering the total holdings, the fund has the highest exposure in the technology sector (20%) and a related industry Internet & eCommerce (15%). Most defensive exposure is in industries like insurance (2%), infrastructure (3%), financials (3%). The cash in the portfolio is at 17%. With a high concentration of technology and e-commerce companies in the US, the company gets 46% of its revenue from this country alone.
Fund performance has been positive for this month with a return of 2.9%, beating the index by 140 bps which generated 1.5% return in the same period. The fund has delivered a healthy 9.9% return in the last three months. However, underperformed the index by 160 bps. The major contributors included Facebook, Apple, and Microsoft while Kraft Heinz and Berkshire Hathaway were the two major detractors. The fund has garnered a return of 14.4% per annum since inception, beating the benchmark index by 240 bps per annum.
The market capitalisation of the company stands at A$2.1 billion with a 52-week high of A$1.8 and low of A$1.46. On the technical, the stock closed the session by a minor loss of 0.29% at A$1.69 after making an intraday low of A$1.685. In the last six months, the stock has given a return of 3.6% while the YTD return stands slightly better at 4.63%.
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