- New fund offers investors access to Magellan’s global equities expertise while substantially hedging the foreign currency exposure of the fund
- Creates a simple solution to help SMSF and retail investors diversify their portfolios
- Magellan’s second Exchange-Quoted Managed Fund (EQMF) – a fund class set to be one of the fastest growing segments of the funds management industry
Magellan Financial Group Limited (‘Magellan’), the international investment management company, announced today that it is launching a currency hedged version of the ASX-quoted Magellan Global Equities Fund (ASX: MGE).
The new Magellan Global Equities Fund (Currency Hedged) is expected to commence trading on the ASX on 10th August 2015 under the ticker MHG.
Mr Frank Casarotti, General Manager of Distribution at Magellan said: “We have been delighted with the response and support from investors, stock brokers and financial advisers for our ASX quoted Magellan Global Equities Fund. As at 31 July 2015 the fund has grown to over A$257 million and has approximately 4450 unit holders.”
“Following the recent fall in the Australian dollar we have seen increased investor demand for the currency hedged versions of our funds. The Magellan Global Equities Fund (Currency Hedged) will give Australian investors a complementary choice to access our global equities expertise via a simple ASX-quoted solution. As is the case with all Magellan ASX quoted funds, investors will have the benefit of live market pricing and the ability to buy and sell the Fund’s units in the secondary market in the same way, and with the same ease, as any ASX-listed security.”
The Magellan Global Equities Fund (Currency Hedged) (ASX: MHG) is the second EQMF launched by Magellan. The features and benefits of EQMFs include:
- Ability to buy and sell units on the ASX and settle via CHESS, avoiding the administrative complexities associated with investing in unlisted funds;
- Access to live and transparent market pricing, which is unavailable for unlisted funds;
- Active management, unlike exchange traded funds (ETFs) which are passively managed or index linked;
- Efficient pricing and high liquidity due to the open-ended nature of the Fund; and A tight price range around net asset value, with the Fund acting as market maker and assisting with providing liquidity.
Magellan will seed the new fund with A$15 million of its own capital.
About the Magellan Global Equities Fund (Currency Hedged)
The Magellan Global Equities Fund (Currency Hedged) investment objective is to achieve attractive risk-adjusted investment returns over the medium to long-term, whilst minimising the risk of permanent capital loss.
The investment process involves intensive bottom-up stock analysis, industry research and macroeconomic analysis, overlaid with a rigorous portfolio construction and risk discipline.
The Fund will invest in a portfolio of between 20 and 40 high-quality global equity stocks. It has the ability to manage equity market risk by holding up to 20% of its net assets in cash. Currency exposure is substantially hedged.
Source: Magellan
