Magellan Global Trust

Marginal Rise in Weekly NAV per unit: Magellan Global Trust (ASX: MGG) had recently released the data related to the weekly NAV. It also published an update of the fund related to December 2018. As per the press release dated January 14, 2019, MGG had NAV amounting to $1.5871 per unit. This value is for the week ended January 11, 2019. This reflects a marginal rise from the previous weekly NAV of MGG. As per the release dated January 7, 2019, Magellan Global Trust had NAV of $1.5728 per unit. This NAV per unit is for the week ended January 4, 2019. Moreover, MGG had also released an update related to December 2018.


Fund Update for December 2018 (Source: Company Reports)

As per the report showcasing the update for the December 2018, the fund size happens to be A$1,651.5 million. Moreover, Magellan Global Trust had also reported the top 10 holdings. The company has exposure of 7.6% towards Alphabet Inc. (NASDAQ: GOOGL) while the exposure to Facebook Inc-A happens to be 6.3%.

Performance to Remain Sensitive to Global Economic Conditions: Moving forward, the performance of Magellan Global Trust would be sensitive to the performance of the broader investment markets. The worries about the global economic downturn have been impacting the global equities markets. Additionally, the investment markets are sensitive to the macro-economic factors and any unfavourable news from the macro front could severely dampen the sentiments of the markets.  

The December fund update also reflected that the company has 14% exposure towards Internet & eCommerce sector, and it has exposure of 18% towards the information technology sector. The fluctuations in the technology stocks could affect MGG’s performance moving forward.

Stock Recommendation: On the daily chart of Magellan Global Trust, Moving Average Convergence Divergence or MACD has been applied and default were considered for the purposes. As per the observation, the MACD line has crossed the signal line and is trending upwards. This signifies that the bullish momentum might sustain moving forward. MGG had delivered the return of 2.13% in the previous 6 months while, in the previous 3 months, the returns were 3.40%.
Considering the above factors, we maintain our “Buy” recommendation on the stock at the current market price of A$1.700 per share (up 1.493% on January 17, 2019).   
 

MFF Capital Investments Limited

Rise in Weekly NTA: MFF Capital Investments Limited (ASX: MFF) had recently reported the weekly NTA (or Net Tangible Assets). The company posted weekly NTA amounting to around $2.714 per share on the pre-tax basis. This weekly NTA was for the week ended January 11, 2019. However, on the post-tax basis, it was around $2.304 per share. This weekly was higher as compared to the weekly NTA of the previous week. The company’s weekly NTA for the week ended January 4, 2019, was circa $2.677 per share on the pre-tax basis while the post-tax basis is was circa $2.199 per share.


Net Profit/(Loss) After Income Tax Expense (Source: Company Reports)

MFF Capital Investments Limited posted the net profit amounting to $239.9 million in FY 2018. The company had stated that the return surpassed the expectations. It also stated that results demonstrate favourable movements with regards to investments’ market values amidst robust markets and benefits of the currency. 

MFF Might Get Supported by Well-Positioned Portfolio: As demonstrated in the annual general meeting, the portfolio happens to be in the robust position. This is because growth as well as business advantages of the large holdings have been outpacing the expectations. Moreover, there are expectations that MFF would continue to work towards the principal investment objective i.e. to improve the net asset value per share. However, it would be working towards the objective in a method which would be pursuant to prudent risk management.

Stock Recommendation: On the daily chart of MFF Capital Investments Limited, Exponential Moving Average or EMA has been applied and default values were considered for the purposes. After careful observation, it was noticed that the stock price has crossed the EMA and is trending in the upward direction. This signifies that the stock might witness bullish momentum.

In the key financial metrics, MGG witnessed YoY rise. At the end of FY 2018, the company’s net margin was 68.4% which implies the rise of 1.8% YoY. Its ROE also rose 3.6% YoY in FY 2018 to 21.9%. Based on the aforesaid facts, we maintain our “Buy” recommendation on MFF at the current price of A$2.700 per share (up 1.504% on January 17, 2019).

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