Summary: The Magellan Global Fund has produced consistent returns over time, which it attributes to bottom-up stock analysis, risk discipline and a focus on broader macro events. The fund looks to invest in companies with sustainable competitive advantages and predictable future earnings. Magellan says that its dual-hurdle performance fee aligns the interests of the client and the investment manager.
Key take out: Magellan says global markets provide wider opportunity and greater diversification than the Australian market can offer.
Key beneficiaries: General Investors. Category: Investment Portfolio Construction.