Magellan Global Trust

June Month - Fund Performance Update: Magellan Global Trust (ASX: MGG) released its Fund Update for the period ended 30 June 2018. The Company’s portfolio recorded a positive return for the quarter of 6.1 per cent versus the 5.6 per cent return of its benchmark MSCI World Net Total Return Index. As per the latest report, Facebook Inc-A, Alphabet Inc, Lowe's Co Inc, Kraft Heinz Co, HCA Healthcare Inc, and Apple Inc are the top holdings of the group’s total investment portfolio with weightage around 8.7%, 7.2%, 5.5%, 5.3%, 5.2%, and 5.2% of Total returns, respectively, as at June 30, 2018. Moreover, the portfolio delivered returns more than the benchmark over the previous six months and since inception. The Group performed consistently which was in line with its long-term track record of delivering strong relative returns during times of market volatility. Therefore, the group aims to continue to strive towards better performance during the upcoming periods despite short-term headwinds. Besides this, the Group bought back about 20,000 more shares (as of 13 July 2018) from the market for the consideration of $31,500 and before that it has already bought back 1,814,196 shares via on-market trade.


Fund Performance as at June (Source: Company Reports)

Moreover, the company disclosed its weekly NAV per unit of Magellan Global Trust and recorded $1.6598 as at July 13, 2018. In the meantime, MGG stock price has been same since listing but rose by 1.23% in last one month as at July 16, 2018. Hence, we maintain our “Buy” recommendation on the stock at the current market price of $ 1.645 by looking at the investment portfolio performance and consistent returns.
 

WCM Global Growth Limited

Decent Portfolio Performance: WCM Global Growth Limited (ASX: WQG) (formerly, Contango Global Growth Limited) released an amended Investment Update and NTA Statement for the period ended 30 June 2018. The company’s portfolio outperformed the broader market during the month with a return of 2.5% versus the 1.8% return of its benchmark MSCI All Country World Index (ex-Australia). The portfolio delivered returns more than the benchmark over the previous three, six months and 12 months. The Group performed consistently which was in line with its long-term track record of delivering strong relative returns during times of market volatility.It was noted that NTA after tax and before tax on unrealized gains for May 2018 was recorded at $1.144; and for June 2018, it was $1.167. The Group focuses on companies with growing competitive advantages with aligned corporate cultures that leads to investments so that they can deliver strong long-term returns irrespective of the macroeconomic or political environment. The Company’s portfolio is managed by WCM, which is a California based asset management firm, specializing in active global and emerging market equities. Their research is largely focused on identifying those companies which have a growth trajectory and provide the return on invested capital (ROIC).


Performance (Source: Company Reports)

It is worth noting that Contango Global Growth Limited has now been changed to WCM Global Growth Limited, with effect from 28 June 2018. Following this, the ASX Issuer code also changed from CQG to WQG. Till date, the group bought back total 1,87,737 shares via on-market trade for the total consideration of $2,01,320.60. Meanwhile, the stock price inclined by 18.85 per cent in the past three months and up by 1.79 per cent in the past one week as at July 16, 2018. It traded at $1.120 as on July 17, 2018 (down by 1.322 per cent). We put a “Hold” recommendation on the stock as it is trading at a higher level.

 
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