Magellan Global Equities (Currency Hedged) - Active ETF

The Magellan Global Equities Fund (Currency Hedged) offers a sophisticated vehicle for accessing a concentrated portfolio of 20 to 40 high-quality global companies. By exploiting the market’s systemic short-term mispricing, the Fund identifies outstanding businesses with enduring competitive advantages that trade at a discount to their intrinsic value.

Management prioritises the mitigation of permanent capital loss through a rigorous fundamental research process, integrating intensive bottom-up analysis with a detailed macroeconomic overlay. This active approach targets a net annual return of 9% over the economic cycle, whilst providing lower volatility than broader equity markets. To protect Australian investors from the vagaries of international markets, the capital component of foreign currency exposure is substantially hedged. The resulting portfolio is a high-conviction, risk-adjusted collection of global leaders designed to compound value over the medium to long term regardless of broader macroeconomic shifts.

The Fund is primarily invested in companies listed on securities exchanges around the world. The Fund typically holds 20-40 stocks and will also have some exposure to cash and cash equivalents.

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.

Read the Product Disclosure Statement prior to making any investment decisions.

Important Documents

Target Market Determination (TMD)

Financial Services Guide (FSG)

Invest through the ASX

Check the MHG current share price and buy on the ASX.

Speak with your adviser/broker. To find an adviser, visit Financial Advice Association Australia.

The Fund aims to achieve attractive risk-adjusted returns over the medium to long term, while reducing the risk of permanent capital loss.

The Fund also aims to deliver a return of 9% per annum, after fees, over the economic cycle.

Invest in The World's Best:

The Fund provides investors the opportunity to invest in a specialised and focused global equity fund. The Fund is actively managed with a focus on delivering attractive risk-adjusted returns over the medium to long-term while aiming to reduce the risk of permanent capital loss. The Fund aims to deliver a return of 9% per annum, net of fees, and is expected to have lower levels of risk compared to global equity markets over the economic cycle.

We believe the market’s short-term focus leads to systemic mispricing of high-quality companies, which often causes a significant divergence between price and intrinsic value in the near term. However, over the long-term, high-quality businesses may be more likely to compound in value and the price of a company will ultimately converge with its intrinsic value.

We seek to identify companies with unique attributes that we believe are more likely to sustain and grow profits over the long-term. Our process requires a deep understanding of a company’s economic moat, business and agency risks, reinvestment potential and ESG factors. Our strict, forward-focused definition of “quality” underlies our approach to stock selection, driven by our rigorous fundamental research process and aims to deliver attractive risk-adjusted returns over the medium to long-term to our investors.

The Fund typically holds 20-40 stocks, purchased at a discount to our assessment of their intrinsic value, with a focus on disciplined portfolio construction and risk management. We believe such a portfolio will achieve sufficient diversification to ensure the Fund is not overly correlated to a single company, or to industry specific or macroeconomic risks. The Fund’s foreign currency exposure is substantially hedged back to Australian dollars.

The Magellan Global Equities Fund (Currency Hedged) 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 Equities Fund (Currency Hedged) 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.

The Magellan Global Equities Fund (Currency Hedged) seeks to invest in outstanding companies at attractive prices, while exercising a deep understanding of the macroeconomic environment to manage investment risk.

The Magellan Global Equities Fund (Currency Hedged) 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.

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Units in the fund referred to herein are issued by Magellan Asset Management Limited ABN 31 120 593 946, AFS Licence No. 304 301 trading as Magellan Investment Partners (‘Magellan’). This material is issued by Magellan and has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation. This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should obtain and consider the relevant Product Disclosure Statement ('PDS') and Target Market Determination ('TMD') and consider obtaining professional investment advice tailored to your specific circumstances before making a decision about whether to acquire, or continue to hold, the relevant financial product. A copy of the relevant PDS and TMD relating to the relevant Magellan financial product may be obtained by calling +61 2 9235 4888 or by visiting www.magellaninvestmentpartners.com.

Past performance is not necessarily indicative of future results and no person guarantees the future performance of the fund, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. Statements contained in this material that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Magellan or the third party responsible for making those statements (as relevant). Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. This material may contain ‘forward looking statements’. Actual events or results or the actual performance of a Magellan financial product or service may differ materially from those reflected or contemplated in such forward-looking statements. This material may include data, research and other information from third-party sources. No guarantee is made that such information is accurate, complete or timely and no warranty is given regarding results obtained from its use. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Magellan will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material.

Further information regarding any benchmark referred to herein can be found at www.magellaninvestmentpartners.com/funds/benchmark-information.  Any third-party trademarks contained herein are used for information purposes only and are the property of their respective owners. Magellan claims no ownership in, nor any affiliation with, such trademarks. This material and the information contained within it may not be reproduced, or disclosed, in whole or in part, without the prior written consent of Magellan.