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.
