Magellan seeks to invest in a focussed portfolio of outstanding global companies and seeks to purchase investments when they are trading at a discount to their assessed intrinsic value. Magellan undertakes extensive fundamental an
alysis on the individual companies and the industries in which they operate.
Magellan believes that outstanding companies are those that are sustainably able to exploit competitive advantages in order to earn returns on capital that are in excess of their cost of capital.
Magellan also undertakes detailed macroeconomic analysis in order to take advantage of mis-pricing of economic cycles to manage investment risk. Magellan is able to invest up to 50% of the Magellan Global Trust’s gross assets in cash and cash equivalents.
Magellan focuses on generating attractive absolute returns over the medium to long term. The Investment Strategy is benchmark agnostic as the strategy has few similarities to market benchmarks or share market indices. Magellan is focussed on delivering attractive risk adjusted returns over the medium to long term whilst minimising the risk of a permanent capital loss, rather than benchmark-relative returns.
The Portfolio will typically comprise 15 to 35 investments. The Magellan Global Trust may also manage its foreign currency exposure arising from investments in overseas markets.