The Magellan Infrastructure Fund has been upgraded to a “5 IP” rating from Research IP, with a score of 4.27/5.
The Magellan Infrastructure Fund primarily invests in the securities of companies listed on stock exchanges around the world, but will also have some exposure to cash & cash equivalents. The Fund can use foreign exchange contracts to facilitate settlement of stock purchases and to mitigate currency risk on specific investments within the portfolio.
The Fund has been designed to provide investors with efficient access to the infrastructure asset class, while protecting capital in adverse markets.
What is the Fund’s competitive advantage?
In a recent update, Portfolio Manager Ofer Karliner, outlines why listed infrastructure and utilities stocks rallied in the fourth quarter, the likely recovery in airport assets, why high carbon scores can be a misleading guide to ESG risks for infrastructure stocks, and why, even if interest rates rise, the infrastructure portfolios still comes with diversification, inflation protection, capital growth and yield benefits if the universe is defined correctly.
Infrastructure Strategy Update – Magellan Financial Group (magellangroup.com.au)
Qualitative Research Report and Data Tear Sheet
Research IP says
“The Magellan Infrastructure offering is differentiated in its focus on investing in reliable earnings streams, rather than looking at the physical asset. It tends to avoid areas where there is competition, commodity price movements or sovereign risk and will not invest in energy infrastructure or emerging countries like China or Russia.”
“Research IP considers key person risk in Stack to be relatively high, having significant responsibility as Head of Investments, Head of Infrastructure, and Portfolio Manager. Stack also chairs Magellan’s Investment Committee.”
“The funds under management (FUM) is manageable with over A$10B (up from A$8.5B at 30 September 2020) in the strategy, while managing over A$19B in total infrastructure assets. This Manager still maintains strong risk controls in place, as position changes can be meaningful in dollar terms, due to the regional exposure including Australia and New Zealand assets. Research IP believes the Manager has a strong understanding of the portfolio and ramification of changes to the portfolio.”
Research IP, 10 January 2021
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Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute financial advice. This document should not be relied upon as a substitute for financial advice from your financial adviser.
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