MFG Core International Fund (Managed Fund) (Ticker:MCSG)

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.

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Fund overview

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.

Why invest internationally?

You buy from the world's best companies, so why not invest in them? To learn more about investing in international equities

Read 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.

Investment objective

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.

Fund features

  • High quality global companies

  • Diversification

  • Exchange quoted on Chi-X

  • Risk conscious

  • Resilient portfolio of 70-90 stocks

  • Attractively priced (0.50%)

  • Fully invested

Investment Philosophy

When researching and investing, the Magellan investment team asks, ‘what does the future look like?'

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)

Fund Facts

Portfolio manager
Structure
Global Equity Fund, $AUD unhedged
Inception date
11 December 2020
Fund size
$16.60 million 30 Sep 2021
Chi-X Ticker
MCSG Market Data Tickers
  Units
Bloomberg MCSG AU EQUITY
Thomson Reuters MCSG.CHA
IRESS MCSG.CXA
ICE iNav**
AUD $
Ticker details
  Indicative NAV
Bloomberg MCSGAUIV INDEX
Thomson Reuters MCSGAUiv.P
IRESS MCSG-AUINAV.NGIF
Solactive iNav
AUD $
Ticker details
  Indicative NAV 
Bloomberg MCSGAIV
Thomson Reuters MCSGAUDINAV=SOLA
IRESS MCSGAUDINAV
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
0.10%/0.10%
(only applicable to investors who apply for units directly with the Fund)
Management fee
0.50% p.a.
Distribution Frequency
Semi-annually
Benchmark
MSCI World Net Total Return Index (AUD)
APIR Code
MGE3851AU

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.

** 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

Actively constructed and systematically managed

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:

  • Economic Moat: A proprietary view on the sustainability of a company's competitive advantages.
  • Disruption: A forward-looking view to the company's resilience or ability to capitalise on disruptive threats and opportunities.
  • Value: Companies that represent value based on tailored criteria encompassing cash flows, incentive payments, capital requirements, and growth.
  • Risk Assessment: Reduce exposure to material stock specific downside risks.

How our portfolio construction works

Product universe
 

Our product universe

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.

Next: Stock scoring

Stock scoring
 

Stock 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.

Next: Portfolio construction

Portfolio construction
 

Portfolio construction

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.

Next: Continuous monitoring

Continuous monitoring
 

Continuous monitoring

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.

Back to beginning

About the Portfolio Manager

 
Vihari Ross

Vihari Ross

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.

Performance

30 September 2021
Performance 3 Months 6 Months Since Inception**
(% PA)
MFG Core International 2.89% 14.68% 17.76%
Benchmark* 3.92% 13.60% 20.43%
Out/Under Performance -1.03% 1.08% -2.67%

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.

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 11 December 2020.

30 September 2021

  % weight
Alphabet Inc 2.4%
Heineken NV 2.3%
Facebook Inc 2.3%
CME Group Inc 2.2%
Kweichow Moutai Company Ltd 2.1%
  % weight
LVMH Louis Vuitton Moet Hennessy 2.0%
Starbucks Corporation 2.0%
McDonald's Corporation 2.0%
Home Depot Inc 2.0%
Microsoft Corporation 2.0%

Unit Prices

Estimated NAV per Unit as at 25/10/2021: 4.10
Date Net Asset Value Entry Exit
22/10/2021 4.1014 4.1055 4.0973
21/10/2021 4.0758 4.0799 4.0717
20/10/2021 4.0524 4.0565 4.0483
19/10/2021 4.0733 4.0774 4.0692
18/10/2021 4.0829 4.0870 4.0788
15/10/2021 4.0769 4.0810 4.0728
14/10/2021 4.0502 4.0543 4.0461
13/10/2021 4.0220 4.0260 4.0180
12/10/2021 3.9984 4.0024 3.9944
11/10/2021 3.9962 4.0002 3.9922
08/10/2021 4.0393 4.0433 4.0353
07/10/2021 4.0518 4.0559 4.0477
06/10/2021 4.0314 4.0354 4.0274
05/10/2021 4.0099 4.0139 4.0059
04/10/2021 3.9755 3.9795 3.9715
01/10/2021 4.0345 4.0385 4.0305
30/09/2021 4.0150 4.0190 4.0110
29/09/2021 4.0679 4.0720 4.0638
28/09/2021 4.0373 4.0413 4.0333
27/09/2021 4.1033 4.1074 4.0992
24/09/2021 4.1436 4.1477 4.1395
23/09/2021 4.1131 4.1172 4.1090
22/09/2021 4.0970 4.1011 4.0929
21/09/2021 4.0930 4.0971 4.0889
20/09/2021 4.0589 4.0630 4.0548
17/09/2021 4.0985 4.1026 4.0944
16/09/2021 4.1213 4.1254 4.1172
15/09/2021 4.0935 4.0976 4.0894
14/09/2021 4.1067 4.1108 4.1026
13/09/2021 4.0937 4.0978 4.0896
10/09/2021 4.1055 4.1096 4.1014
09/09/2021 4.1132 4.1173 4.1091
08/09/2021 4.1372 4.1413 4.1331
07/09/2021 4.1242 4.1283 4.1201
06/09/2021 4.1113 4.1154 4.1072
03/09/2021 4.0965 4.1006 4.0924
02/09/2021 4.1225 4.1266 4.1184
01/09/2021 4.1418 4.1459 4.1377
31/08/2021 4.1421 4.1462 4.1380
30/08/2021 4.1440 4.1481 4.1399
27/08/2021 4.1257 4.1298 4.1216
26/08/2021 4.1295 4.1336 4.1254
25/08/2021 4.1399 4.1440 4.1358
24/08/2021 4.1330 4.1371 4.1289
23/08/2021 4.1604 4.1646 4.1562
20/08/2021 4.1631 4.1673 4.1589
19/08/2021 4.1305 4.1346 4.1264
18/08/2021 4.1029 4.1070 4.0988
17/08/2021 4.1276 4.1317 4.1235

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 7.0000 cents $3.9023 Annual Fund Distribution 2021

3 ways to access MFG Core International Fund

MFG Core International Fund (Managed Fund) (Ticker:MCSG)

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

    ICE iNav**
    AUD $
    Ticker details
      Indicative NAV
    Bloomberg MCSGAUIV INDEX
    Thomson Reuters MCSGAUiv.P
    IRESS MCSG-AUINAV.NGIF
    Solactive iNav
    AUD $
    Ticker details
      Indicative NAV 
    Bloomberg MCSGAIV
    Thomson Reuters MCSGAUDINAV=SOLA
    IRESS MCSGAUDINAV
  2. Check the current share price MCSG

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

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

Additional information and forms

MFG Core International Fund (Managed Fund) (Ticker:MCSG)

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 International Fund (Managed Fund) (Ticker:MCSG)

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 $0.07 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.