Magellan Infrastructure Performance Review | News

What is the Magellan Infrastructure fund?

Magellan Infrastructure Fund is designed to provide investors with efficient access to the infrastructure asset class, while reducing the risk of permanent capital loss. It aims to achieve attractive risk adjusted returns over the medium to long-term, while reducing the risk of permanent capital loss.

Portfolio consists of of 20 to 40 investments.
Additionally, the portfolio has a 50/50 neutral allocation to infrastructure and utilities, changing the allocations based on economic conditions.
Allocation to cash or cash equivalent maximum 20%.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Magellan Infrastructure

Magellan Infrastructure Fund Commentary September 30, 2023

The portfolio recorded a negative return in the September quarter as 10-year bond rates lifted rapidly as jobs and spending remained resilient, suggesting central banks would need to do more to tame inflation. The stocks that detracted the most were the investments in Australian toll road company Transurban, U.S. rail company Norfolk Southern and U.S. tower company American Tower. Australian toll road operator Transurban traded down on rising Australian bond yields and weaker-than-expected traffic in one of its key markets. U.S.- based rail company Norfolk Southern fell as U.S. bond yields jumped and as they reduced full-year revenue expectations at their H1 result in late July on a slower-than-expected recovery in volumes post the derailment as well as declining fuel surcharges and storage revenue. American Tower declined on the back of higher rates, and as key customers faced potential remediation costs and other liabilities associated with the use of legacy lead cables up until the 1950s.

The only stock that contributed was Netherlands-listed toll road and airport group Ferrovial. The Ferrovial share price rose on better-than-expected traffic from its largest asset, the 407 ETR toll road in Canada, and strong traffic performance from Heathrow Airport.

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Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Magellan Infrastructure	MGE0002AU	Managed Funds	Property and Infrastructure	Global Listed Infrastructure	Property - Global Listed Infrastructure Index	Global Infrastructure Index	2.48 BN	1.05%	10.00%	0.3%

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Magellan Infrastructure	2.19%	10.8%	20.03%	4.88%	7.02%	10.51%	14.36%	12.56%	-3.25%	-14.27%	-46.33%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Magellan Infrastructure	Property - Global Listed Infrastructure Index	0.79%	-0.53%	NA%	NA%	NA%	1.02	3.32%	5.27%	0.95	0.92

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Magellan Infrastructure	Yes		-	https://www.pendalgroup.com/	-

Product Due Diligence

What is Magellan Infrastructure

Magellan Infrastructure is an Managed Funds investment product that is benchmarked against Global Infrastructure Index and sits inside the Property - Global Listed Infrastructure Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Magellan Infrastructure has Assets Under Management of 2.48 BN with a management fee of 1.05%, a performance fee of 10.00% and a buy/sell spread fee of 0.3%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Magellan Infrastructure has returned 2.19% in the last month. The previous three years have returned 4.88% annualised and 12.56% each year since inception, which is when the Magellan Infrastructure first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Magellan Infrastructure first started, the Sharpe ratio is NA with an annualised volatility of 12.56%. The maximum drawdown of the investment product in the last 12 months is -3.25% and -46.33% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Magellan Infrastructure has a 12-month excess return when compared to the Property - Global Listed Infrastructure Index of 0.79% and -0.53% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Magellan Infrastructure has produced Alpha over the Property - Global Listed Infrastructure Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Property - Global Listed Infrastructure Index category, you can click here for the Peer Investment Report.

What level of diversification will Magellan Infrastructure provide?

Magellan Infrastructure has a correlation coefficient of 0.92 and a beta of 1.02 when compared to the Property - Global Listed Infrastructure Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Magellan Infrastructure and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Magellan Infrastructure with the Global Infrastructure Index?

For a full quantitative report on Magellan Infrastructure compared to the Global Infrastructure Index, you can click here.

Can I sort and compare the Magellan Infrastructure to do my own analysis?

To sort and compare the Magellan Infrastructure financial metrics, please refer to the table above.

Has the Magellan Infrastructure been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Magellan Infrastructure?

If you or your self managed super fund would like to invest in the Magellan Infrastructure please contact via phone or via email .

How do I get in contact with the Magellan Infrastructure?

If you would like to get in contact with the Magellan Infrastructure manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Magellan Infrastructure. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - June 30, 2023

Relatively concentrated portfolio of typically 20 to 40 investments.

Typical cash and cash equivalents exposure between 0 – 20%.

Performance Commentary - April 30, 2023

Relatively concentrated portfolio of typically 20 to 40 investments.

Typical cash and cash equivalents exposure between 0 – 20%.

Performance Commentary - March 31, 2023

The portfolio recorded a positive return in the March quarter as inflation and 10-year bond rates pulled back on recession concerns. The stocks that contributed the most were Spanish airport operator Aena, French toll road and airport group Vinci and Australian toll road company Transurban. Aena jumped as its traffic levels exceeded 2019 levels and as 2022 earnings and 2023 guidance exceeded consensus. Vinci’s share price lifted as earnings came in ahead of consensus and as airport passenger traffic continued to rebound across its portfolio. Transurban rose as its second quarter traffic in two of its key markets, Sydney and Brisbane, exceeded 2019 levels.

The stocks that detracted the most were the investments in US rail company Norfolk Southern, US utilities Dominion Energy and Eversource Energy. Norfolk Southern fell on increased social licence risk after a train derailment made international news. Dominion fell as they failed to provide any further detail on their restructuring plans at their annual results presentation (despite the result being in line). Eversource fell as its JV partner for its offshore Sunrise wind project took an impairment and as the New England regulator launched an investigation into bill increases

Performance Commentary - January 31, 2023

Performance Commentary - December 31, 2022

The portfolio recorded a positive return in the December quarter as inflation and 10-year bond rates pulled back from September highs. The stocks that contributed the most were French toll road and airport operator Vinci, US rail company Norfolk Southern and UK water utility United Utilities. Vinci rose as traffic on its roads and at its airports exceeded expectations. Norfolk Southern advanced as Congress intervened in a long-running labour dispute to force a settlement on the unions that were holding out. United Utilities lifted as the draft methodology for the next regulatory period was well received and UK bond rates fell.

The stocks that detracted the most were the investments in US utility Dominion Energy, and US tower companies Crown Castle and American Tower. Dominion Energy fell as the management team announced a strategic review of the business that could lead to changes to earnings guidance. Crown Castle and American Tower lagged as interest rates and inflation remained elevated.

Performance Commentary - September 30, 2022

The portfolio recorded a negative return in the September quarter when higher interest rates reduced the allure of safer equities. The stocks that detracted the most were the investments in Transurban and Atlas Arteria of Australia and Dominion Energy. Transurban declined after its full-year fiscal 2022 result and distribution target for fiscal 2023 (of 53 Australian cents per unit; +30% approximately) disappointed. Atlas Arteria, which operates four toll roads across France, Germany and the US, declined after a capital raising for the acquisition of the Chicago Skyway, a US toll road. Dominion Energy fell following a poor outcome in the final regulatory order for a large offshore wind project in Virginia. The company is appealing this decision.

The only stock that contributed was Atlantia of Italy. Atlantia rose after the infrastructure group’s share price was supported by the ongoing takeover process.

Performance Commentary - June 30, 2022

The portfolio recorded a positive return in the June quarter. Stocks that contributed the most included the investments in Atlantia of Italy and Atlas Arteria and Transurban of Australia. Atlantia surged after the Benetton family, the largest shareholder in the motorway and airport infrastructure company with a 33% stake, announced a takeover of 23 euros a share to take the company private. Atlas Arteria, which operates four toll roads across France, Germany and the US, rose after Australian-based IFM Investors took a stake in the company and commenced discussions over a potential take-private transaction. Transurban rose as traffic numbers recovered to pre-pandemic levels and the tollway operator likewise benefited from the inflation protection tollways offer investors.

The stocks that detracted the most were the investments in Aena of Spain and Norfolk Southern and CSX, two railroad companies from the US. Aena slid after the world’s largest airport operator, despite a strong traffic recovery, reported disappointing earnings for the first quarter on the back of higher energy prices. Norfolk Southern and CSX slid on rising talk that tighter monetary policy could send the US economy into a recession, which would hurt railroad volumes, even though railroaders overall reported encouraging results for the first quarter. Norfolk Southern, for instance, posted operating revenue of US$2.9 billion, an increase of 12%.

Magellan Infrastructure (MGE0002AU) Report & Performance