INVESTING

Magellan Infrastructure Fund

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This week Money asks Morningstar where to invest and their pick is the Magellan Infrastructure Fund (APIR: MGE0002AU)

The Magellan Infrastructure Fund offers investors the opportunity to invest in a specialised and focused global infrastructure fund with a currency overlay. It has been designed to provide investors with efficient access to the infrastructure asset class, while protecting capital in adverse markets.

Objective

magellan infrastructure

To achieve attractive risk-adjusted returns over the medium to long-term while reducing the risk of permanent capital loss. The fund's benchmark is the S&P Global Infrastructure Index A$ Hedged Net Total Return.

Independent commentary

The Magellan Infrastructure Fund benefits from a team of astute investors with complementary skill sets. The fund's in-depth research at the company and sector levels is impressive, and a sensible process ties things together nicely.

The fund invests in firms that possess a sustainable competitive advantage enabling lasting returns beyond their cost of capital.

The fund prefers to invest in infrastructure assets that are not exposed to competition or commodity risks and as such prefers areas like toll roads, airports, and water utilities. Magellan also offers an unhedged version of the fund.

Key fund data

Management fee: 1.05% Performance Fee: 10% over the S&P Global Infrastructure Index A$ Hedged Net Total Return. 10.0% over the MSCI World Total Return Net $A and the Australian Government 10 year bond yield. Morningstar Analyst Rating: Silver Minimum initial invest: A$20,000 Role in portfolio: Supporting player Fund Size: AUD $839.3 million

magellan infrastructure fund

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