An actively constructed, systematically managed and continuously monitored portfolio of 70-100 resilient global listed infrastructure businesses, ones that meet Magellan’s exacting standards and strict, propriety definition of listed infrastructure.Invest Now
A diversified and resilient global equities portfolio of 70-100 stocks that meet Magellan’s strict, proprietary definition of Infrastructure, with a proven track record of delivering consistent and reliable investment returns whilst protecting capital in adverse markets.
Investing in infrastructure is about investing in the companies that provide essential services to society, and earning predictable, reliable returns in the process.Read more (PDF)
MFG Core Infrastructure Fund is actively constructed, systematically managed and continuously monitored. Crucially, we know that this combination of rigorous fundamental stock selection and systematic portfolio management works. We've been offering this strategy to institutional investors for more than a decade now and have amassed more than A$9 billion* of funds under management. We are delighted to be making this fund available to retail investors for the first time.
It is the 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.
The MFG Core Infrastructure Fund seeks to achieve attractive risk-adjusted returns over the medium to long term through investment in a diversified portfolio of high-quality companies that meets Magellan’ strict, proprietary definition of listed infrastructure. Through the application of our definition of infrastructure, we seek to limit external risks, providing investors with a highly defensive and resilient investment exposure.
* 30 September 2020
At Magellan, we believe that the listed infrastructure asset class should deliver investors reliable investment returns.
Seeking to achieve this aim, many other investment managers focus exclusively on the essential nature of the services provided by infrastructure assets, reasoning that this will confer predictable demand.
We agree that the predictable demand conferred by the provision of essential services is an indispensable characteristic of infrastructure. Yet our experience tells us that predictable demand is only half of the story. To produce reliable investment returns, you also need to ensure that the cash flows of the business are reliable. And to ensure that cash flows are reliable, you need to be confident that the earnings of the business will not be eroded by competition, commodity price movements, or sovereign risk
To implement this view, we developed a strict, proprietary framework to identify securities that are appropriately characterised as infrastructure. Only these companies, whose characteristics confer uncommon resilience, are eligible for inclusion in our portfolios.
Defined in this manner, our track record demonstrates that global listed infrastructure provides investors with a highly defensive, inflation linked exposure, that exhibits low correlation with other asset classes, warranting a place in every investor's portfolio.
Our strict definition
Meet the Portfolio Manager: David Costello(viewing time:7:42 mins)
* As at 31 December 2020
** The iNAV reflects the estimated NAV per Unit updated for portfolio stocks or equivalent securities that have live market prices during the Trading Day. The iNAV will not be updated for market-based movements such as movements in stock market indices.
Active stock selection, underpinned by rigorous fundamental investment research
Systematic portfolio management
Continuous active monitoring
Importantly, we know that this combination of rigorous fundamental stock selection and systematic portfolio management works.
We've been offering the Core Infrastructure strategy to institutional investors for more than a decade now and have amassed more than $9 billion* of funds under management. We are pleased to have delivered these investors a return of 12.3% p.a.*, net of fees, since our December 2009 inception. We are even more proud that we have delivered this performance with great resilience and reliability, with a downside capture ratio of just 0.1 over the last five years.*30 September 2020
Investments in the MFG Core Infrastructure Fund are selected by reference to a rigorous fundamental research process, that implements Magellan's strict, proprietary definition of Infrastructure with a view to delivering consistent and reliable investment returns through the economic cycle.
To be included in the portfolio, prospective companies must meet the exacting standards of Magellan's dedicated infrastructure team, who review every single stock to ensure:
In forming a judgment on each of these questions, we conduct extensive due diligence to understand the assets and regulatory regimes, deriving insights from meetings with the companies, the analysis of company disclosures and financial statements, and consultation with industry experts.
Deep fundamental rigour and research typically carry meaningful management fees, but with portfolio weights struck in a systematic fashion, we can deliver this strategy with a management fee of 0.50%, giving rise to a solution that can sit at the core of any investor's portfolio.
Let’s be clear: when we refer to systematic portfolio management, we're not delegating portfolio decisions to some indecipherable algorithm or black box. These are simply prudent risk controls to ensure liquidity and targeted levels of diversification at the sector level, by region, and at the individual stock level.
David Costello joined Magellan in 2015. Prior to working with Magellan, David led EY’s financial modelling practice in Brisbane. Prior to his role with EY, David worked with National Australia Bank and SFG Consulting. David holds a Bachelor of Laws (Honours) and a Bachelor of Commerce (Honours), both from the University of Queensland. David is a CFA Charterholder.
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Investors should read the Product Disclosure Statement (PDS) prior to making any investment decisions.
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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.