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 Cboe

  • 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
$411.10 million 30 Apr 2022
Cboe 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 in respect of the Fund’s portfolio stocks that have live market prices during the Trading Day, or where they do not have live market prices, may be updated for equivalent securities or movements in after-market trading and for foreign exchange movements to the extent that the impact is not offset by the hedging of the Fund’s foreign currency exposure. 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 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.

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 April 2022
Performance 3 Months 6 Months 1 Year 3 Years
(% PA)
5 Years
(% PA)
7 Years
(% PA)
10 Years
(% PA)
Since Inception**
(% PA)
MFG Core Infrastructure 5.16% 8.97% 12.98% 8.42% 7.98% 8.97% 11.83% 12.59%
Benchmark* 6.31% 7.99% 13.29% 4.82% 5.51% 5.29% 9.00% 8.42%
Out/Under Performance -1.15% 0.98% -0.31% 3.60% 2.47% 3.68% 2.83% 4.17%

* S&P Global Infrastructure NTR Index (A$ Hedged)
** Fund inception 17 December 2009

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 April 2022

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.

31 March 2022

  % weight
Vinci SA 2.9%
Cellnex Telecom SA 2.9%
Transurban Group 2.9%
National Grid PLC 2.9%
Enbridge Inc 2.8%
  % weight
TC Energy Corporation 2.7%
Fortis Inc 2.7%
Aena SME SA 2.5%
Terna SpA 2.5%
Snam SpA 2.3%

Unit Prices

Date Net Asset Value Entry Exit
17/05/2022 1.7416 1.7442 1.7390
16/05/2022 1.7293 1.7319 1.7267
13/05/2022 1.7202 1.7228 1.7176
12/05/2022 1.6970 1.6995 1.6945
11/05/2022 1.7032 1.7058 1.7006
10/05/2022 1.6941 1.6966 1.6916
09/05/2022 1.7028 1.7054 1.7002
06/05/2022 1.7212 1.7238 1.7186
05/05/2022 1.7276 1.7302 1.7250
04/05/2022 1.7330 1.7356 1.7304
03/05/2022 1.7207 1.7233 1.7181
02/05/2022 1.7161 1.7187 1.7135
29/04/2022 1.7295 1.7321 1.7269
28/04/2022 1.7655 1.7681 1.7629
27/04/2022 1.7524 1.7550 1.7498
26/04/2022 1.7541 1.7567 1.7515
22/04/2022 1.7683 1.7710 1.7656
21/04/2022 1.7841 1.7868 1.7814
20/04/2022 1.7887 1.7914 1.7860
19/04/2022 1.7743 1.7770 1.7716
14/04/2022 1.7743 1.7770 1.7716
13/04/2022 1.7686 1.7713 1.7659
12/04/2022 1.7716 1.7743 1.7689
11/04/2022 1.7724 1.7751 1.7697
08/04/2022 1.7805 1.7832 1.7778
07/04/2022 1.7742 1.7769 1.7715
06/04/2022 1.7763 1.7790 1.7736
05/04/2022 1.7592 1.7618 1.7566
04/04/2022 1.7469 1.7495 1.7443
01/04/2022 1.7550 1.7576 1.7524
31/03/2022 1.7407 1.7433 1.7381
30/03/2022 1.7370 1.7396 1.7344
29/03/2022 1.7243 1.7269 1.7217
28/03/2022 1.7116 1.7142 1.7090
25/03/2022 1.7042 1.7068 1.7016
24/03/2022 1.6855 1.6880 1.6830
23/03/2022 1.6706 1.6731 1.6681
22/03/2022 1.6764 1.6789 1.6739
21/03/2022 1.6786 1.6811 1.6761
18/03/2022 1.6795 1.6820 1.6770
17/03/2022 1.6754 1.6779 1.6729
16/03/2022 1.6588 1.6613 1.6563
15/03/2022 1.6647 1.6672 1.6622
14/03/2022 1.6541 1.6566 1.6516
11/03/2022 1.6535 1.6560 1.6510
10/03/2022 1.6579 1.6604 1.6554
09/03/2022 1.6536 1.6561 1.6511
08/03/2022 1.6411 1.6436 1.6386

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  
December 2021 2.8800 cents $1.6787  
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 Cboe - Ticker Code MCSI

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

- PDS update 19 April 2022

Additional information and forms

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

1. Read the Product Disclosure Statement (PDS)
- PDS update 19 April 2022

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 locate an adviser in your area visit one of the following associations:

Investment Insights

FAQs

The MFG Core Series are quoted on Cboe 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.

Cboe Australia, a regulated stock exchange, offers trading in all Australian listed securities and the exclusive trading of CXA quoted Warrants and Funds.

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.