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Did you miss the Magellan Global Trust report?

You may have missed the Magellan Global Trust (ASX: MGG) result yesterday, it reported for the period ending 31 December 2017.

Here are some of the highlights, there are no comparatives as it was the first result:

  • Revenue of $74.27 million
  • Net profit after tax (NPAT) of $68.77 million
  • Net assets of $1.6 billion
  • Earnings per unit (EPU/EPS) 6.58 cents
  • Distribution of 3 cents per unit

As a reminder, this trust was only launched a few months ago by Magellan Financial Group Ltd (ASX: MFG) and aims to achieve ‘attractive risk-adjusted returns over the medium to long-term for unitholders, whilst reducing the risk of permanent capital loss.’

The trust invests in a portfolio of between 15 to 35 ‘high-quality global stocks’ and has the ability for the portfolio to be up to 50% cash.

It aims to deliver investors a target cash distribution yield of 4% per annum, paid every six months. A distribution reinvestment plan discount of 5% is also in effect.

The trust disclosed its top holdings at 31 December 2017. They were, in order, Facebook, Alphabet (Google), Apple, Lowe’s Co, Kraft Heinz, Starbucks, HCA Holdings, Visa, Wells Fargo and Oracle. This is a very high-quality list and speaks to the quality of the businesses the trust is aiming for.

The trust delivered a total return of 4.3% from inception to 31 December 2017, which was a 2.3% growth of the net asset value per unit and a 2% distribution.

The trust finished the 2017 calendar year with 22.7% of the portfolio in cash, which was predominantly US dollars.

Foolish takeaway

It’s far too early to judge Magellan Global Trust after only a few months, but it has already delivered a decent return and could be an excellent way for investors to get exposure to international stocks without having to do the research themselves. I think it will beat its benchmark after fees over the medium-term.

I also think these top stocks are very likely to beat the market too.

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Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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