An actively constructed, systematically managed and continuously monitored portfolio of 70-90 of the world’s best businesses, leveraging Magellan’s quality investment research capabilities and investment philosophy.Invest Now
A diversified global equities portfolio of 70-90 of the world’s best companies - those that have sustainable competitive advantages enabling them to continually earn returns on capital in excess of their cost of capital.
You buy from the world's best companies, so why not invest in them? To learn more about investing in international equitiesRead more (PDF)
Constructed using Magellan’s long-standing and proven investment process, the investment team conducts extensive fundamental research to assess a business’s ‘economic moat’, the potential impact or benefits of disruption, value, and key risks and exposures, before overlaying our proprietary MFG Core Series scoring framework. 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 International Fund seeks to achieve attractive risk-adjusted returns over the medium to long term through investment in a diversified portfolio of high-quality companies.
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.
Importantly, high quality companies may still have their competitive advantage eroded by technology, evolving competitive threats, changes in consumer behaviour or other factors and so, this view on quality must evolve as disruptive changes create divergence between winners and losers within and between industries over time. History can often be a poor guide into this future focused risk assessment.
Businesses protected by structural advantages in combination with the opportunity for sustainable growth at strong returns are more valuable. As such, the MFG Core International Fund is designed to provide investors with a diversified portfolio of high-quality companies at reasonable valuations and with the opportunity to compound their earnings over time, while avoiding the bad and ugly within the index.
Meet the Portfolio Manager: Vihari Ross
(viewing time: 8:40 mins)
All management costs described above are inclusive of the estimated net effect of GST.
The inception date represents the first date the Fund was offered to retail investors.
* As at 30 April 2021
Magellan's investment research DNA is based on the proven ability to find the world's best businesses. This forward-looking assessment of advantages, disruption and risk mitigation is a key tenet of Magellan's long-term investment process that seeks to grow our client's portfolios over the medium to long term, coupled with capital protection objectives.
This 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 International Fund focuses on four key factors when identifying the universe and assessing businesses:
Risk Assessment: Reduce exposure to material stock specific downside risks.
The thousands of available stocks are first filtered for size, liquidity and exclusions such as fossil fuels & mining, controversial weapons, gambling and tobacco.
The remaining stocks are then tested for an economic moat AND resilience to disruption based on our proprietary research.
Only those stocks that qualify under both 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 and resilience to, or opportunities from, disruption and are assessed for key risks including those related to debt, valuation and idiosyncratic event risk.
Each stock is also scored on the basis of valuation. Considerations include 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 high 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.
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, valuation and key risks creating new active portfolio construction inputs which are used to rebalance the portfolio.
Head of Research and Head of Core Series/Portfolio Manager
Vihari Ross is a Portfolio Manager, Head of the Core Series and Head of Research. Vihari has 20 years experience in investment and joined Magellan in 2007. Prior to her appointment to Head of Research she was Head of the Franchises team and retains responsibility for research coverage of franchises stocks. Before joining the Franchises team in 2009, Vihari was a Senior Analyst on the Financials team. Prior to Magellan, Vihari spent four years as an equity analyst at Ausbil Dexia, covering the financials and consumer sectors, and worked as a quantitative analyst at Commonwealth Investment Management (now Colonial First State). Vihari holds a Bachelor of Commerce majoring in Actuarial Studies and Finance and a Master of Commerce majoring in Finance from the University of New South Wales. She is an Associate of the Institute of Actuaries. Vihari is a member of Magellan’s Investment Committee.
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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.