MFG Core Infrastructure Fund (Managed Fund) (TICKER:MCSI)

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.

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Fund overview

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.

Ever thought of investing in essential services?

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.

Investment objective

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 meet Magellan’s 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.

Fund features

  • Strict, proprietary definition of infrastructure  

  • Targeted Diversification

  • Exchange quoted on Chi-X

  • 10-year track record*

  • High quality listed infrastructure companies

  • Resilient portfolio of 70-100 stocks

  • Attractively priced (0.50%)

* 30 September 2020

Definition and Philosophy

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)

Fund Facts

Portfolio manager
Structure
Global Listed Infrastructure Fund, A$ Hedged
Fund size
$272.20 million 30 Sep 2021
Chi-X Ticker
MCSI Market Data Tickers
  Units
Bloomberg MCSI AU EQUITY
Thomson Reuters MCSI.CHA
IRESS MCSI.CXA
ICE iNav**
AUD $
Ticker details
  Indicative NAV
Bloomberg MCSIAUIV INDEX
Thomson Reuters MCSIAUiv.P
IRESS MCSI-AUINAV.NGIF
Solactive iNav
AUD $
Ticker details
  Indicative NAV
Bloomberg MCSIAIV
Thomson Reuters MCSIAUDINAV=SOLA
IRESS MCSIAUDINAV
More about iNAV
More information about iNav

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.

Magellan has engaged ICE Data Indices, LLC and Solactive AG as iNAV calculation agents to independently calculate and disseminate an iNAV. Both iNAVs are freely available to investors. From time to time there may be differences between the two iNAVs as a result of different calculation methodologies or timing of the data.

Buy / Sell Spread
0.15%/0.15%
(only applicable to investors who apply for units directly with the Fund)
Management fee
0.50% p.a.
Distribution Frequency
Semi-annually
Benchmark
S&P Global Infrastructure Index A$ Hedged Net Total Return
APIR Code
MGE9182AU

** 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 Chi-X 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.

Research ratings 1

Zenith

Recommended

Lonsec

Recommended

Investment Process and Portfolio Construction

There are three pillars to the MFG Core Infrastructure Fund's investment process:
  • 1

    Active stock selection, underpinned by rigorous fundamental investment research

  • 2

    Systematic portfolio management

  • 3

    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
  • ESG Risk: Sustainable business models that limit portfolio exposure to the risks that have a wide-ranging detrimental impact on society.
  • Economic Moat: High quality equity investments that reflect Magellan's proprietary economic moat assessment.
  • Disruption: Companies that benefit from or are protected from the forces of disruption, a forward assessment based on Magellan's proprietary research.
  • Value: Companies that represent relative value based on tailored criteria encompassing cash flows, incentive payments, capital requirements, growth.
  • Risk Assessment: Utilise sensible strategies to reduce exposure to material specific downside risks.
Rigorous Fundamental Research
 

Rigorous Fundamental Research

Hundreds of stocks in our infrastructure universe are filtered down to between 70 – 100 that:

  • Meet our strict proprietary definition of infrastructure;
  • Have robust balance sheets; and
  • Exhibit acceptable environmental, social and governance risk exposures.

Next: Systematic Portfolio Management

Systematic Portfolio Management
 

Unconstrained weighting based on free-floating market capitalisation

Our portfolio construction begins with an unconstrained weighting based on free-floating market capitalisation.

Continue: Security level risk controls

Security level risk controls

Overweight individual securities are then constrained to a maximum of 3% of total holdings.

Continue: Regional constraints

Regional constraints

Constraints on the aggregate weight applied to 7 geographic regions are then applied.

The US and EU are each constrained to a maximum weight of 40% of total holdings.

All other regions are constrained to a maximum weight of 15%.

Continue: Sector constraints

Sector constraints

Finally, constraints on the weights applied to 9 infrastructure subsectors are then applied.

All subsectors are constrained to a maximum weight of 30% of total holdings.

Next: Continuous Active Monitoring

Continuous Active Monitoring
 

Continuous Active Monitoring

Ongoing dynamic analysis of business fundamentals and monthly rebalancing mitigates event risk and preserves targeted diversification settings.

Every quarter, each company within our universe is reassessed on the basis of its quality, valuation and key risks creating new active portfolio construction inputs.

Back to beginning

About the Portfolio Manager

 
David Costello

David Costello

Portfolio Manager

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.

Performance

30 September 2021
Performance 3 Months 6 Months 1 Year 3 Years
(%)
5 Years
(%)
7 Years
(%)
10 Years
(%)
Since Inception**
(%)
MFG Core Infrastructure 1.95% 4.99% 11.85% 8.79% 7.03% 9.32% 11.85% 12.24%
Benchmark* 2.68% 4.54% 21.07% 4.78% 4.83% 5.70% 8.76% 7.90%
Out/Under Performance -0.73% 0.45% -9.22% 4.01% 2.20% 3.62% 3.09% 4.34%

* S&P Global Infrastructure NTR Index

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 17 December 2009.

Growth of AUD $10,000
30 September 2021

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 17 December 2009.

30 September 2021

  % weight
Transurban Group 3.1%
Vinci SA 3.1%
Enbridge Inc 3.1%
Sydney Airports 3.0%
Fortis Inc 2.9%
  % weight
TC Energy Corporation 2.9%
Cellnex Telecom SA 2.9%
National Grid PLC 2.8%
Aena SME SA 2.5%
Emera Inc 2.2%

Unit Prices

Estimated NAV per Unit as at 25/10/2021: 1.62
Date Net Asset Value Entry Exit
22/10/2021 1.6239 1.6263 1.6215
21/10/2021 1.6178 1.6202 1.6154
20/10/2021 1.6198 1.6222 1.6174
19/10/2021 1.6081 1.6105 1.6057
18/10/2021 1.5991 1.6015 1.5967
15/10/2021 1.6067 1.6091 1.6043
14/10/2021 1.6087 1.6111 1.6063
13/10/2021 1.5970 1.5994 1.5946
12/10/2021 1.5908 1.5932 1.5884
11/10/2021 1.5834 1.5858 1.5810
08/10/2021 1.5905 1.5929 1.5881
07/10/2021 1.5977 1.6001 1.5953
06/10/2021 1.6000 1.6024 1.5976
05/10/2021 1.5960 1.5984 1.5936
04/10/2021 1.5987 1.6011 1.5963
01/10/2021 1.5851 1.5875 1.5827
30/09/2021 1.5831 1.5855 1.5807
29/09/2021 1.5912 1.5936 1.5888
28/09/2021 1.5807 1.5831 1.5783
27/09/2021 1.5997 1.6021 1.5973
24/09/2021 1.6069 1.6093 1.6045
23/09/2021 1.6146 1.6170 1.6122
22/09/2021 1.6194 1.6218 1.6170
21/09/2021 1.6211 1.6235 1.6187
20/09/2021 1.6135 1.6159 1.6111
17/09/2021 1.6157 1.6181 1.6133
16/09/2021 1.6258 1.6282 1.6234
15/09/2021 1.6261 1.6285 1.6237
14/09/2021 1.6329 1.6353 1.6305
13/09/2021 1.6352 1.6377 1.6327
10/09/2021 1.6278 1.6302 1.6254
09/09/2021 1.6459 1.6484 1.6434
08/09/2021 1.6610 1.6635 1.6585
07/09/2021 1.6398 1.6423 1.6373
06/09/2021 1.6513 1.6538 1.6488
03/09/2021 1.6505 1.6530 1.6480
02/09/2021 1.6603 1.6628 1.6578
01/09/2021 1.6570 1.6595 1.6545
31/08/2021 1.6409 1.6434 1.6384
30/08/2021 1.6405 1.6430 1.6380
27/08/2021 1.6407 1.6432 1.6382
26/08/2021 1.6362 1.6387 1.6337
25/08/2021 1.6430 1.6455 1.6405
24/08/2021 1.6491 1.6516 1.6466
23/08/2021 1.6568 1.6593 1.6543
20/08/2021 1.6635 1.6660 1.6610
19/08/2021 1.6565 1.6590 1.6540
18/08/2021 1.6514 1.6539 1.6489
17/08/2021 1.6533 1.6558 1.6508

Distribution history

IMPORTANT


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  
June 2021 2.8800 cents $1.5528 Annual Fund Distribution 2021

3 ways to access MFG Core Infrastructure

MFG Core Infrastructure Fund (Managed Fund) (TICKER:MCSI)

  1. View the indicative Net Asset Value (iNav)*

    ICE iNav**
    AUD $
    Ticker details
      Indicative NAV
    Bloomberg MCSIAUIV INDEX
    Thomson Reuters MCSIAUiv.P
    IRESS MCSI-AUINAV.NGIF
    Solactive iNav
    AUD $
    Ticker details
      Indicative NAV
    Bloomberg MCSIAIV
    Thomson Reuters MCSIAUDINAV=SOLA
    IRESS MCSIAUDINAV
  2. Check the current share price MCSI

  3. Buy on the Chi-X securities exchange - Ticker Code MCSI

Investors should read the Product Disclosure Statement (PDS) prior to making any investment decisions.

Additional information and forms

MFG Core Infrastructure Fund (Managed Fund) (TICKER:MCSI)

1. Read the Product Disclosure Statement (PDS)

2. Click here to APPLY NOW and start your online application process.

You will need the following information handy to support your online application:

  • Identification documents (e.g. drivers license) 
  • Mobile number and email address
  • Your Tax File Number (TFN)
  • Complete the FATCA/CRS verification (if applicable)

Note: Magellan accepts initial direct investments from individuals with a minimum of $10,000.  You must be over 18 years of age.

Additional information and forms

  • Check your balance(s), view transaction confirmations and periodic statements.
  • Update your personal details.
  • Transact*, including invest additional funds, switch or withdraw.
  • Participate in the Distribution Reinvestment Plan (DRP).
  • Provide your FATCA/CRS certification.

MFG Core Infrastructure Fund (Managed Fund) (TICKER:MCSI)

Speak with your adviser/broker. To find an adviser, visit the 'Financial Planning Association of Australia (FPA)' or 'Your best interests' website

Investment Insights

FAQs

The MFG Core Series are quoted on the Chi-X securities exchange and can be bought and sold like any listed security. Alternatively investors can apply and redeem directly with Magellan. See How to Invest for more information.

Chi-X Australia is an innovative Australian securities and derivatives exchange. Funds that are quoted on Chi-X can be bought and sold like any listed security via a stockbroker or online trading account.

When buying units on the securities exchange, there is no minimum initial investment. When applying directly with Magellan, the minimum initial investment is $10,000.

We seek to be transparent with our clients and are making the following disclosures in relation to our listed funds:
 

  • Securities exchange announcements under each ticker code;
  • Estimated Net Asset Value ("NAV") per Unit published on MFG Core Series' website daily;
  • Indicative intra-day NAV per Unit ("iNAV") published on MFG Core Series' website daily and which is updated throughout the trading day;
  • Monthly fund factsheets on MFG Core Series' website and on the securities exchange; and
  • The full portfolio on a quarterly basis with a delay period of no longer than two months on MFG Core Series' website and on the securities exchange.

The Fund targets a cash distribution yield of 4% per annum. The Target Cash Distribution will be paid semi-annually (for the periods ending 30 June and 31 December each year), with the actual amount for each period determined by using the average of the month-end NAV per Unit over the two year rolling period.

Magellan intends to pay a Target Cash Distribution of $0.0288 per unit for the first four distribution periods, being the six month period ending 30 June 2021, 31 December 2021, 30 June 2022 and 31 December 2022.

You can exit the Fund either by making a withdrawal request to the Responsible Entity using a Withdrawal Form or by selling units on the Securities Exchange via your stockbroker or online broker. How you enter the Fund does not affect the method by which you can exit the Fund.

To make a withdrawal request with the Responsible Entity…
If you have a Securityholder Reference Number (SRN) or Investor Number
You will need to make a withdrawal request to the Unit Registry.
If you have a Holder Identification Number (HIN) with your stockbroker or online broker
You will need to convert your holding from your HIN with your stockbroker or online broker to an SRN issued by the unit registry.
This is a standard process which your stockbroker or online broker can assist you with.

 

 

To sell your units on the Securities Exchange….
If you have a Securityholder Reference Number (SRN) or Investor Number
You can provide your SRN to certain stockbrokers who can sell your units on your behalf.
If your stockbroker does not offer this service, you will need to ask your stockbroker to convert or transfer your holding onto a HIN.  This is a standard process which your stockbroker can assist you with. You can then instruct your stockbroker to sell your units on the Securities Exchange.
If you have a Holder Identification Number (HIN) with your stockbroker
You can instruct your stockbroker to sell your units on the Securities Exchange.


There are important differences between exiting the Fund via the Securities Exchange or by withdrawing directly with the Responsible Entity, including the price you will receive. You should read the PDS or consult with your financial adviser before making any decision on how to invest in the Fund.

Registry enquiries (Automic)

Automic Group

GPO Box 2629

Sydney NSW 2001

Emailmagellanfunds@automicgroup.com.au

Fax+61 2 8072 1409

Phone1300 408 792 (or +61 2 8072 1481)

Important Information: Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited (ABN 31 120 593 946, AFS Licence No 304 301). Past performance is not necessarily indicative of future results and no person guarantees the future performance of the fund(s), the amount or timing of any return from the fund(s), or that the investment objectives of the fund(s) will be achieved. This material has been provided for general information purposes and must not be construed as investment advice. It does not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should consider obtaining professional investment advice tailored to their specific circumstances and should obtain and read the relevant Target Market Determination (‘TMD’) and Product Disclosure Statement (‘PDS’) applicable to the fund(s) prior to making a decision about whether to acquire or continue to hold an interest in the fund(s). The TMD and PDS for the fund(s) are available on this website or can be obtained by calling 02 9235 4888. Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. Nothing contained herein should be construed as granting by implication, or otherwise, any licence or right to use any trademark displayed without the written permission of the owner. No part of this material may be reproduced or disclosed, in whole or in part, without the prior written consent of Magellan Asset Management Limited.