An actively constructed, systematically managed and continuously monitored ESG-focused portfolio of 70-90 of the world’s best businesses, leveraging Magellan’s quality investment research capabilities, investment philosophy and proven ESG framework.
Invest NowA diversified global equities portfolio of 70-90 of the world’s best companies – those with sustainable competitive advantages and business models that meet our nuanced and proven ESG risk assessment process.
What does ESG and sustainable investing really mean? Read our new flyer 'Making sense of Sustainable and ESG investing'.
Find out more (PDF)These competitive advantages enable them to continually earn excess returns above their cost of capital. Constructed using Magellan’s long-standing proven investment process, the investment team conducts extensive fundamental research to assess a company’s economic moat, potential impacts of disruption, ESG risks and opportunities, value, and key risks and exposures. The portfolio is systematically rebalanced on a quarterly basis using these inputs. It is not the manager’s intention to hedge the foreign currency exposure of the Fund arising from investments in overseas markets.
The MFG Core ESG Fund seeks to achieve attractive risk-adjusted returns over the medium to long term through investment in a diversified portfolio of high quality companies. This objective incorporates consideration of environmental, social and governance risks and the application of a proprietary low carbon framework.
Meet the Portfolio Manager: Elisa Di Marco
(viewing time: 9:26 mins)
Magellan has always had a consideration for ESG factors, with ESG embedded in its investment process since the start of the business in 2007.
From day one, we've invested in businesses based on quality and risk. ESG is a fundamental pillar of risk assessment, and a key part of how we invest. Over the last 5 years Magellan’s ESG team has further honed this investment philosophy and built a unique proprietary low carbon framework, designed from the ground up to solve for carbon and ESG risks. Our ESG philosophy is simple in idea, but nuanced and considered in execution. We seek to identify ESG risk factors that may have a material impact on cashflows or valuation.
ESG investing is a broad topic that encapsulates the Environmental, Social and Governance risks and opportunities that a company and industry is exposed to. There are many nuances and lenses through which ESG investing is defined and assessed as the requirements, technology and expectations differ by investor, company, sub-industry and geography.
At Magellan, we consider factors that may have a wide-ranging, long-term impact on our society. Our philosophy and process are not constrained by a checklist, or by ticking boxes. Instead, we focus on the future, by investing in companies we believe to have a sustainable competitive advantage and that do not have a detrimental impact on the environment or our lives.
The Magellan proprietary ESG risk framework, assesses the degree to which ESG factors have a material impact on cashflows. The approach is nuanced and thoughtful, acknowledging and engaging with the complexities of ESG investing.
Low Carbon Framework
Excludes companies with high exposure to decarbonization risks.
ESG portfolio exclusions
Excludes exposures considered detrimental to societies e.g. alcohol, tobacco retail and adult entertainment.
ESG business risk integration
ESG risks assessed for materiality & sustainability of business practices. Scores are forward looking, reviewed by the Investment Committee and actively monitored.
ESG portfolio construction integration
Direct integration of ESG scores in portfolio construction. Lower ESG risks receive a higher score and higher portfolio weighting.
Proxy Voting & Engagement
Explicit policy for Governance. Environmental & social outreach is company and issue specific.
Units | |
Bloomberg | MCSE AU EQUITY |
Thomson Reuters | MCSE.CHA |
IRESS | MCSE .CXA |
All management costs described above are inclusive of the estimated net effect of GST.
** iNAV calculations as shown on www.mfgcoreseries.com.au (the "data") provided by ICE Data Indices, see ICE Terms of Use, and is updated during Cboe trading hours. Powered by Factset. iNAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates ("ICE Data") and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.
We regard the identification of a business's economic moat, or sustainable competitive advantage as key to investing with a long-term horizon. Identifying businesses with strong moats, sensible management, the ability to invest capital at high rates of return and with discernible tailwinds, means we are positioning our portfolio towards those businesses that are most likely to succeed and thus enabling better outcomes for our investors.
The investment process is predicated on building in-depth knowledge and expertise on the economics and key risk considerations of each business within our universe.
Born out of Magellan's investment research DNA, the MFG Core ESG Fund focuses on five key factors when identifying the universe and assessing businesses, including our proprietary ESG risk assessment process.
The thousands of available stocks are first filtered for size, liquidity and base exclusions such as fossil fuels & mining, controversial weapons, gambling and tobacco.
We next apply our proprietary low carbon framework AND ESG exclusions to reduce exposure to decarbonisation risk and companies that are more likely to have a detrimental impact on society.
The remaining stocks are then tested for an economic moat, resilience to disruption AND ESG risk assessment based on our proprietary research.
Only those stocks that qualify under these tests are considered for the next stage, scoring.
Rigorous fundamental analysis underlies our proprietary MFG Core Series scoring framework.
Stocks that qualify under our in-depth assessment of quality are scored on the basis of their competitive advantages, resilience to, or opportunities from, disruption and exposure to ESG risks and opportunities. Companies are then assessed for key risks including those related to debt, valuation and idiosyncratic event risk.
Each business is also scored on the basis of valuation, having regard to stock and industry specific considerations, including sustainable growth opportunities, returns on capital, cash generation, and other non-cash considerations. This is not a simple assessment of low vs high PE which, on its own, can often be a poor guide to the best investments on a forward-looking basis.
These active portfolio construction inputs are then synthesised into a systematic portfolio management process where only the highest scoring companies are included in the portfolio.
The scores are used to determine portfolio weights, subject to consideration of geographic and industry exposure and specific risk assessment.
Stocks that are higher quality or have lower ESG risks receive higher scores, and are upweighted in the portfolio.
The portfolio is continuously monitored. Ongoing analysis of business fundamentals ensure our assessments remain robust, and key risk exposures remain acceptable.
Every quarter, each company within our universe is reassessed on the basis of its quality, disruption, ESG, valuation and key risks; creating revised active portfolio construction inputs which are used to rebalance the portfolio.
Portfolio Manager
Elisa Di Marco joined Magellan in 2015 with responsibility for research coverage in the financials sector. In 2019, Elisa joined the Core Series team and in 2020 Elisa joined the ESG team and was appointed PM of the MFG core ESG fund. Prior to Magellan, Elisa spent two years as an analyst at APRA, primarily stress testing and supervising Australian financial institutions. Elisa also worked at Macquarie Group as an equity analyst covering banks and at NYSE Euronext Paris in surveillance and research.
Elisa holds a Bachelor of Commerce (Honours) from the University of Wollongong and a Doctor of Philosophy from the University of New South Wales.
Performance | 3 Months | 6 Months | 1 Year | Since Inception** (% PA) |
---|---|---|---|---|
MFG Core ESG | -11.55% | -10.95% | 0.71% | 6.54% |
Benchmark* | -8.96% | -6.25% | 4.87% | 10.44% |
Out/Under Performance | -2.59% | -4.70% | -4.16% | -3.90% |
* Benchmark is the MSCI World NTR Index (AUD)
** Fund inception 11 December 2020
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). Inception date 11 December 2020.
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). Inception date 11 December 2020.
31 March 2022
% weight | |
---|---|
Alphabet Inc | 2.5% |
Starbucks Corporation | 2.5% |
Microsoft Corporation | 2.5% |
Adobe Inc | 2.5% |
Autodesk Inc | 2.4% |
% weight | |
---|---|
Mastercard Inc | 2.3% |
Amadeus IT Group SA | 2.3% |
MSCI Inc | 2.3% |
Rockwell Automation Inc | 2.2% |
Nestle SA | 2.2% |
Date | Net Asset Value | Entry | Exit |
---|---|---|---|
17/05/2022 | 3.5781 | 3.5817 | 3.5745 |
16/05/2022 | 3.5540 | 3.5576 | 3.5504 |
13/05/2022 | 3.5990 | 3.6026 | 3.5954 |
12/05/2022 | 3.5174 | 3.5209 | 3.5139 |
11/05/2022 | 3.4676 | 3.4711 | 3.4641 |
10/05/2022 | 3.5156 | 3.5191 | 3.5121 |
09/05/2022 | 3.4921 | 3.4956 | 3.4886 |
06/05/2022 | 3.5560 | 3.5596 | 3.5524 |
05/05/2022 | 3.5948 | 3.5984 | 3.5912 |
04/05/2022 | 3.7156 | 3.7193 | 3.7119 |
03/05/2022 | 3.6662 | 3.6699 | 3.6625 |
02/05/2022 | 3.7123 | 3.7160 | 3.7086 |
29/04/2022 | 3.6921 | 3.6958 | 3.6884 |
28/04/2022 | 3.7980 | 3.8018 | 3.7942 |
27/04/2022 | 3.6797 | 3.6834 | 3.6760 |
26/04/2022 | 3.6485 | 3.6521 | 3.6449 |
22/04/2022 | 3.6957 | 3.6994 | 3.6920 |
21/04/2022 | 3.7238 | 3.7275 | 3.7201 |
20/04/2022 | 3.7464 | 3.7501 | 3.7427 |
19/04/2022 | 3.7889 | 3.7927 | 3.7851 |
14/04/2022 | 3.7269 | 3.7306 | 3.7232 |
13/04/2022 | 3.7581 | 3.7619 | 3.7543 |
12/04/2022 | 3.6856 | 3.6893 | 3.6819 |
11/04/2022 | 3.7323 | 3.7360 | 3.7286 |
08/04/2022 | 3.7772 | 3.7810 | 3.7734 |
07/04/2022 | 3.7855 | 3.7893 | 3.7817 |
06/04/2022 | 3.7504 | 3.7542 | 3.7466 |
05/04/2022 | 3.7684 | 3.7722 | 3.7646 |
04/04/2022 | 3.8438 | 3.8476 | 3.8400 |
01/04/2022 | 3.8382 | 3.8420 | 3.8344 |
31/03/2022 | 3.8084 | 3.8122 | 3.8046 |
30/03/2022 | 3.8528 | 3.8567 | 3.8489 |
29/03/2022 | 3.8914 | 3.8953 | 3.8875 |
28/03/2022 | 3.8103 | 3.8141 | 3.8065 |
25/03/2022 | 3.7620 | 3.7658 | 3.7582 |
24/03/2022 | 3.7620 | 3.7658 | 3.7582 |
23/03/2022 | 3.7319 | 3.7356 | 3.7282 |
22/03/2022 | 3.8345 | 3.8383 | 3.8307 |
21/03/2022 | 3.7923 | 3.7961 | 3.7885 |
18/03/2022 | 3.8451 | 3.8489 | 3.8413 |
17/03/2022 | 3.7878 | 3.7916 | 3.7840 |
16/03/2022 | 3.8038 | 3.8076 | 3.8000 |
15/03/2022 | 3.6920 | 3.6957 | 3.6883 |
14/03/2022 | 3.6129 | 3.6165 | 3.6093 |
11/03/2022 | 3.5762 | 3.5798 | 3.5726 |
10/03/2022 | 3.5986 | 3.6022 | 3.5950 |
09/03/2022 | 3.6726 | 3.6763 | 3.6689 |
08/03/2022 | 3.5554 | 3.5590 | 3.5518 |
Please ensure that your Tax File Number (TFN) or Australian Business Number (ABN) is provided to the Unit Registry by Record Date, otherwise tax will be withheld on income attributed to you at the top marginal tax rate plus Medicare Levy.
If you have elected to receive distributions in cash, please ensure that your bank account details are provided to the Unit Registry by Record Date, otherwise your distribution payment will be withheld until a valid bank account is provided.
To review or update your TFN/ABN and bank account details, log on to the Unit Registry’s online portal.
Date | Distribution per unit | Reinvestment price | |
---|---|---|---|
December 2021 | 7.0000 cents | $4.3474 | |
June 2021 | 7.0000 cents | $3.9517 | Annual Fund Distribution 2021 |
View the indicative Net Asset Value (iNav)*
Check the current share price MCSE
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Investors should read the Product Disclosure Statement (PDS) prior to making any investment decisions.
Additional information TMD - MFG Core ESG Fund - MCSE Financial Services Guide
1. Read the Product Disclosure Statement (PDS)
- PDS update 19 April 2022
2. Click here to APPLY NOW and start your online application process.
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Note: Magellan accepts initial direct investments from individuals with a minimum of $10,000. You must be over 18 years of age.
Additional information TMD - MFG Core ESG Fund - MCSE Financial Services Guide
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InvestorDaily podcast host David Stratford, is joined by Elisa Di Marco, MFG Core ESG Fund Portfolio Manager. In this episode, Elisa explains that companies with ESG aren’t just performing lip-service for better publicity, rather, they are genuinely concerned for proper compliance to globally-proven environmental policies. Elisa also discusses the importance of engagement and management, as well as how ESG policies significantly reduce the element of risk when investing in a company of any scale. (Listening time: 26 mins)
Providing benchmarks, data and analytics to global financial market participants. (Reading time: 2 mins)
A dominant business with significant growth opportunities. (Reading time: 2 mins)
Providing data and analytical solutions for the education and research industries. (Reading time: 2 mins)
Productivity in the office and the environment. (Reading time: 3 mins)
Dom Giuliano, Deputy CIO and Head of ESG, explains the growth in sustainable investing, one way to define the issue, how Magellan has helped companies confront recent social choices and why the election of a more-sustainable-friendly US president doesn’t reduce climate risks. (Viewing time: 18 mins)