TOL - 4th Jul, 2024
Access some of the world's highest quality businesses
....and the core of Magellan's research DNA.
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This interview was taped on Wednesday 19 June 2024.
To quote the old marketing slogan, "Quality never goes out of style". While it was meant to apply to jeans, you could equally apply it to investing. In this case, it’s the wisdom of filling your portfolio with solid high-calibre companies, including some of the world’s most exciting tech opportunities.
At Magellan, quality is about more than quant fundamentals.
“We’re looking for companies that are structurally advantaged that have what we call economic forces that will allow them to protect their existing earnings but also grow earnings into the future. Some of the attributes we are looking at include scale, switching costs, barriers to entry, and network effects,” says Elisa Di Marco, Portfolio Manager for Magellan Core Global and Core ESG Funds.
This process has identified the likes of companies like Apple (NASDAQ: AAPL), Microsoft (NYSE: MSFT), Intuit (NYSE: INTU) and Netflix (NASDAQ: NFLX) as quality inclusions. All of these companies have solid fundamentals as well as structural forces such as digitisation and AI fuelling their future revenue streams.
Magellan launched the Magellan Core Series on Cboe, meaning investors can access Magellan’s proprietary fundamental research as well as a diversified suite of equities in one trade and for an annual management fee of just 51 basis points.
In this Fund in Focus, Di Marco shares Magellan’s approach to quality and ESG, some of the big names the process has identified and why structural growth trends are critical to defining quality. She also discusses how these strategies can be incorporated into a portfolio.
Timecodes
- 0:00 - Intro and overview of the Magellan Core Strategies
- 1:49 - Magellan's definition of quality
- 4:23 - Magellan's ESG criteria
- 6:59 - Cross-over between the Core Global and Core ESG strategies
- 8:10 - Why software is a significant weighting
- 9:26 - Structural growth drivers as a key component of quality
- 10:50 - How investors can use the strategies in a portfolio
Access the Magellan Core Series
Magellan's range of competitively priced global equity and infrastructure funds offer investors a unique combination of active fundamental research and a repeatable portfolio construction process. The Core Series has Magellan's research DNA at its core, providing investors with diversified exposure to their proprietary definitions of quality or infrastructure.
Learn more here
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Sara is a Content Editor at Livewire Markets. She is a passionate writer and reader with more than a decade of experience specific to finance and investments. Sara's background has included working at ETF Securities, BT Financial Group and Macquarie Group. She also holds a degree in psychology which drives a continued fascination with how human behaviour drives and is driven by investments and market activity.
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Sara is a Content Editor at Livewire Markets. She is a passionate writer and reader with more than a decade of experience specific to finance and investments. Sara's background has included working at ETF Securities, BT Financial Group and...
Sara is a Content Editor at Livewire Markets. She is a passionate writer and reader with more than a decade of experience specific to finance and investments. Sara's background has included working at ETF Securities, BT Financial Group and...
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