Did you miss the Magellan Global Trust report?

Magellan Global Trust (ASX:MGG) reported its result yesterday.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »