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Top fund announces $191 million profit, 10% distribution rise

Leading global listed investment trust (LIT) Magellan Global Trust (ASX: MGG) has announced its result for the six months to 31 December 2019.

Magellan Global Trust’s HY20 numbers

Magellan Global Trust revealed that it made a net profit of $191.5 million, compared to a loss last year of $12.7 million.

The results of LITs can seem confusing because they deliver investment returns, a return of -5% can seem bad in an absolute dollar sense compared to last year’s result, whilst generating a return of 10% in one year and 20% in another year shows profit doubling in dollar terms. LIT profits aren’t consistent like normal operating businesses.

In the six months to 31 December 2019 the LIT made a total return of 8.6%, slightly underperforming the MSCI World Net Total Return Index of 9%. In the 12 months to 31 December 2019 the LIT made a total return of 26.9%. These returns quoted are the growth in Magellan Global Trust’s net asset value (NAV) plus the distribution.

Magellan Global Trust distribution

The trust increased its distribution by 10% to 3.3 cents per share, up from 3 cents per share.

A distribution re-investment plan is available with a 5% discount to the NAV per unit.

What are Magellan Global Trust’s largest holdings?

The positions which were larger than 5% of the fund at 31 December 2019 were, in order of size: Microsoft, Alphabet, Facebook, Alibaba, Starbucks, Visa and Mastercard.

Other positions included: Yum! Brands, LVMH, Atmos Energy, Reckitt Benckiser, Crown Castle International, Tencent, HCA Healthcare, Novartis, American Express, McDonald’s, Xcel Energy, Anheuser-Busch InBev, Eversource Energy, WEC Energy, Nestle, SAP, CME Group and Apple.

The trust finished the period with 6.1% of the portfolio in cash.

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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.