Magellan Financial Group Ltd (ASX: MFG) shares are an easy way for investors to get diversified exposure on the ASX. Magellan is an Aussie investment manager that focuses on global equities and global listed infrastructure.
Those are not necessarily the easiest asset classes to invest in for the average Joe. However, investors might be curious as to what actually underpins their Magellan investments.
Here’s a look at what the Aussie investments group is actually holding right now.
Magellan’s Funds
Magellan has a number of different investment strategies and vehicles that it uses within its Global Equities strategy. For instance, there is the listed Magellan Global Fund Closed Class (ASX: MGF) which targets a cash yield of 4% per annum across 20-40 companies.
Magellan also has exposures across its direct-investment vehicles such as the Magellan Global Fund (Hedged) and Magellan High Conviction Fund.
In Global Infrastructure, there is the direct-investment Magellan Infrastructure Fund, as well as the listed Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) (ASX: MICH).
Investors purchasing Magellan shares are essentially getting a look through exposure to these diversified strategies.
What are you investing in with Magellan shares?
Magellan shares have been struggling in 2021 even as global markets have been climbing higher. So, what’s driving the difference?
Some of the reasons have been to do with Magellan’s own investors. Investing in Magellan as a listed investment company means investors are getting exposure to factors affecting the business, over and above just the pure investment performance.
For instance, Magellan shares were under pressure yesterday as reports emerged of a key institutional investor’s review of the Magellan mandate.
Leaving aside business issues to one side, investors would be keen to know some of the key holdings underpinning their Magellan investment aside from stakes in the underlying investment vehicles.
There have been some significant recent investments from the Aussie group. These include taking sizeable stakes in FinClear, Mexican fast food chain Guzman y Gomez, and investment banking upstart Barrenjoey Capital Partners.
While Magellan shares are struggling right now, investors will be hoping the pivot towards these strategic stakes can help drive future growth for the investment manager.
The post Own Magellan (ASX:MFG) shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.
Should you invest $1,000 in Magellan right now?
Before you consider Magellan, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magellan wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- Magellan (ASX:MFG) share price falls 2% after investor warning
- 2 ASX 200 blue chip shares that might be the best to buy
- The Magellan (ASX:MFG) share price just hit another 52-week low, down 17% in a month
- What’s going wrong for the Magellan (ASX:MFG) share price lately?
- Top brokers name 3 ASX shares to sell next week
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Magellan Infrastructure Fund. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3CZFV3G
Leave a Reply