Magellan Infrastructure Fund
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/7-2023-11-28-02:38.pdf |
FUND MANAGER | Magellan Asset Management Ltd |
ASX Code | |
APIR | MGE0002AU |
ASSET CLASS | INFRASTRUCTURE |
INVESTMENT STYLE | The Fund offers investors an opportunity to invest in a specialised and focused global infrastructure Fund. |
INVESTMENT PROFILE | The Fund aims to achieve attractive risk-adjusted returns over the medium to long term while minimising the risk of permanent capital loss. |
CURRENCY MANAGEMENT | Hedged |
INCEPTION DATE | 29-06-2007 |
BENCHMARK | S&P Global Infrastructure Index A$ Hedged Net Total Return |
FUND SIZE | S&P Global Infrastructure Index A$ Hedged Net Total Return |
DISTRIBUTION FREQUENCY | Half-yearly |
NO. OF HOLDINGS | 20-40 |
FEES | 1.06% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Magellan Infrastructure FundInvesting in the Fund offers investors a range of benefits, including:
Investor suitabilityAn investment in the Fund may suit you if you are seeking a long-term investment exposure to listed international infrastructure equities. |
RISK LEVEL | High |
INVESTOR SUITABILITY | An investment in the Fund may suit you if you are seeking a long-term investment exposure to listed international infrastructure equities. |
Risks
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Detail |
Key Features
About the FundThe Fund offers investors an opportunity to invest in a specialised and focused global infrastructure Fund. The Fund's investment universe is any entity listed on a global stock exchange whose primary business is the ownership and operation of infrastructure assets. The primary objectives of the Fund are to achieve attractive risk-adjusted returns over the medium to long-term, while reducing the risk of permanent capital loss. The Fund will invest in companies that generate the dominant part of their earnings from the ownership of infrastructure assets. We endeavour to acquire these companies at discounts to their assessed intrinsic value. We anticipate that the Fund's portfolio will comprise 20 to 40 investments. We believe such a portfolio will achieve sufficient diversification to ensure the Fund is not overly correlated to a single company or to macroeconomic risks. It is our intention to substantially hedge the capital component of the foreign currency exposure of the Fund arising from investments in overseas markets back to Australian Dollars. Investment philosophyThe Magellan Infrastructure Fund has been designed to provide investors with efficient access to the infrastructure asset class, while protecting capital in adverse markets. The infrastructure asset class, when appropriately defined, is characterised by monopoly-like assets that face reliable demand and enjoy predictable cashflows. As a result, Magellan has established proprietary classification criteria to appropriately categorise securities as investment grade infrastructure, and thus eligible for inclusion in its portfolios or otherwise. Potential investments that meet these criteria are expected to achieve strong underlying financial performance over medium- to long-term timeframes, which should translate into reliable, inflation-linked investment returns. 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. |
Mandate
How we invest your moneyPortfolio constructionThe Fund's investment process integrates three key stages:
The resulting portfolio provides investors with exposure to securities that meet Magellan's infrastructure classification criteria, while giving consideration to each security's quality and its price relative its assessed intrinsic value. Investments heldThe Fund primarily invests in the securities of companies listed on stock exchanges around the world, but will also have some exposure to cash & cash equivalents. The Fund can use foreign exchange contracts to facilitate settlement of stock purchases and to mitigate currency risk on specific investments within the portfolio. It is our intention to substantially hedge the capital component of the foreign currency exposure of the Fund arising from investments in overseas markets back to Australian Dollars. Asset classes and allocation rangesThe Fund's assets are typically invested within the following asset allocation ranges:
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