MFG Core ESG Fund (Managed Fund) (TICKER:MCSE)

An actively managed, research driven and competitively priced portfolio of 70-90 of the world's highest quality and ESG active businesses. The fund leverages Magellan's DNA, that is Magellan's proprietary definition of quality, ESG framework, investment process and investment team.

Invest Now

Fund overview

A diversified global equities portfolio of 70-90 of the world’s best companies – those with sustained competitive advantages, and attributes that meet our ESG risk assessment research process.

The portfolio is constructed using Magellan’s DNA - our long-standing proven investment process and our experienced investment team. The investment team actively research companies to apply our proprietary definition of ‘Quality’ and 'ESG'. Identifying companies with unique attributes enable the business to generate attractive sustainable returns over the longer-term. We assess companies for their exposure to ESG risks and opportunities, and carbon factor risks.

Investment objective

The MFG Core ESG Fund seeks to achieve attractive risk-adjusted returns over the medium to long term through investment in a diversified portfolio of high quality companies. The fund integrates ESG risk and opportunity management via active ESG research, portfolio construction and engagement.

Fund features

  • Active research

  • Proprietary universe including low carbon and ESG frameworks

  • Quality global portfolio

  • Competitively priced

  • Diversification

  • Resilient portfolio of 70-90 stocks

  • Risk controls, including ESG risk management and engagement objectives

  • Consistent repeatable process, designed to reduce exposure to ESG risks

ESG and Sustainable Investment Philosophy

ESG integration is part of Magellan's DNA

Since 2007, we've invested in businesses based on quality and risk. ESG is a fundamental pillar of risk assessment, and a key part of how we invest. Our ESG philosophy is simple in idea, but nuanced and considered in execution. We seek to identify ESG risk factors that may have a material impact on cashflows or valuation.

At Magellan, we consider ESG factors that may have a wide-ranging, long-term impact on our society. Our philosophy and process are not constrained by a checklist, or by ticking boxes. Instead, we focus on the future, by investing in companies we believe to have a sustainable competitive advantage, that do not have a detrimental impact on the environment or our lives. We invest in high quality ESG active companies, that are more likely to withstand ESG risks and benefit from ESG opportunities.

Over the last 5 years Magellan's ESG team has further honed this investment philosophy and built a unique low carbon framework. These frameworks were designed from the ground up to manage for carbon risks and ESG risks and opportunities.


(viewing time: 6:04 mins)

ESG fund features

The MFG Core ESG Fund thoughtfully seeks to manage the portfolio's ESG risks and opportunities. Specifically the fund seeks to lower the carbon risk of the portfolio, lower ESG risk exposures, and increase exposure to ESG opportunities.

The process is supported by policies, our ESG Team and the Investment Team. We are committed to reporting our ESG progress to all stakeholders.

(viewing time: 4:04 mins)

  • 1

    Low Carbon Framework - active research to exclude companies with higher exposure to decarbonisation risks. Commitment to materially lower carbon risk than the MSCI World Index.

  • 2

    ESG risk assessment actively research company ESG risks and opportunities. Assessed for materiality and management credibility. ESG scores are nuanced and forward looking and, reviewed by Investment Committee.

  • 3

    ESG in portfolio construction - direct integration of active ESG scores in portfolio construction. Lower ESG risks or greater ESG opportunities receive a higher score and higher portfolio weighting.

  • 4

    ESG engagement objectives and stewardship - Active stewardship on defined ESG engagement objectives. In house proxy voting.

  • 5

    ESG portfolio exclusions – Excludes exposures considered detrimental to society, for example tobacco, alcohol and controversial weapons.

Fund Facts

Portfolio manager
Global Equity Fund, A$ Unhedged
Inception date
11 December 2020
Fund size
$15.50 million 30 Nov 2023
Cboe Ticker
MCSE Market Data Tickers
Thomson Reuters MCSE.CHA
ICE iNav**
Ticker details
  Indicative NAV
Thomson Reuters MCSEAUiv.P
Solactive iNav
Ticker details
  Indicative NAV
Bloomberg MCSEAIV
More about iNAV
More information about iNav

The iNAV reflects the estimated NAV per Unit updated for portfolio stocks that have live market prices during the Trading Day, or where they do not have live market prices, may be updated for equivalent securities or movements in after-market trading and for foreign exchange movements. The iNAV will not be updated for market-based movements such as movements in stock market indices.

Magellan has engaged ICE Data Indices, LLC and Solactive AG as iNAV calculation agents to independently calculate and disseminate an iNAV. Both iNAVs are freely available to investors. From time to time there may be differences between the two iNAVs as a result of different calculation methodologies or timing of the data.

Buy / Sell Spread
(only applicable to investors who apply for units directly with the Fund)
Management fee
0.51% p.a.
Distribution Frequency
MSCI World Net Total Return Index (AUD)

Transaction costs may also apply - refer to the Product Disclosure Statement. All management costs described above are inclusive of the estimated net effect of GST

** iNAV calculations as shown on (the "data") provided by ICE Data Indices, see ICE Terms of Use, and is updated during Cboe trading hours. Powered by Factset. iNAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates ("ICE Data") and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.

INVESTMENT RISKS: All investments carry risk. While it is not possible to identify every risk relevant to an investment in a fund, we have provided details of risks in the fund's Product Disclosure Statement.

Research ratings 1







Ratings are only one factor to be taken into account when deciding whether to invest in a financial product.

See Research house ratings disclaimers

Actively constructed and research driven

Magellan's DNA is the ability to identify high quality and ESG active companies on a forward looking basis. This forward-looking assessment identified companies with unique attributes that we consider support its ability to generate attractive sustainable returns over time. Quality companies are more likely to withstand market cycles, and compound returns for  investors.

Magellan defines quality factors which are actively researched by the investment team. These factors are qualitative and forward looking.

  • ESG risk and opportunity: ESG active companies that are aligned with our Magellan proprietary ESG framework, which scores companies on their management of and exposure to ESG risks and opportunities.
  • Economic moat: a proprietary view on the sustainability of a companies competitive advantages. This will include consideration of for example scale, switching costs and industry structure.
  • Moat trend: direction and stability of moat over time.
  • Business risk: predictability of earnings over the next 4 years. This will include company specific risks, industry risks, macro economic and geopolitical risks.
  • Agency risk: risk surrounding the deployment of cash flows generated. For example, confidence in management execution and M&A risks.
  • Re-investment potential: through the cycle sustainable levels of growth and returns.
Rigorous Fundamental Research

Rigorous Fundamental Research

Thousands of stocks are filtered down to a universe of around 200 companies that:

  • Meet our strict proprietary definition of quality;
  • Have robust balance sheets;
  • Meet our base exclusions such as fossil fuels & mining, controversial weapons, gambling and tobacco. and
  • Meet the conditions of our proprietary low carbon framework and ESG exclusions such as alcohol and adult entertainment.
Exclusion: controversial weaponsExclusion: alcoholExclusion: adult entertainmentExclusion: tabaccoExclusion: fossil fuel extraction

Next: Rules Based Portfolio Management

Systematic Portfolio Management

Unconstrained weighting based on market capitalisation and quality

Our portfolio construction begins with selecting the top 70-90 companies by our assessment of quality and ESG after allowing for minimum diversification.

The portfolio is seeded with an unconstrained weighting based on market capitalisation and quality. Quality companies and those with lower ESG risks (greater ESG opportunities) are upweighted in the portfolio relative to their unconstrained market capitalisation weighting.

Continue: Security level risk controls

Security level risk controls

Overweight individual securities are then constrained to a maximum of 3% of total holdings.

Continue: Regional constraints

Regional constraints

Constraints on the aggregate weight applied to 7 geographic regions.

The US, US multinational and EU are each constrained to a maximum weight of 40% of total holdings.

All other regions are constrained to a maximum weight of 10%.

Continue: Sector constraints

Sector constraints

Finally, constraints on the weights are applied by risk vector.

Risk vectors are constrained to a maximum weight of 20% of total holdings, with the highest risk category constrained to 10%.

Next: Continuous Active Monitoring

Continuous Active Monitoring

Continuous Active Monitoring

Ongoing dynamic analysis of business fundamentals and quarterly rebalancing mitigates event risk and preserves targeted diversification settings.

Every quarter, we reassess the companies in the universe on the basis of their quality and key risks. This process determines the active research inputs used in the portfolio construction process.

Back to beginning

Meet the Portfolio Manager

Elisa Di Marco, PhD

Elisa Di Marco, PhD

Portfolio Manager

Elisa Di Marco joined Magellan in 2015 with responsibility for research coverage in the financials sector. In 2019, Elisa joined the Core Series team and in 2020 Elisa joined the ESG team and was appointed PM of the MFG Core ESG fund. In 2022, Elisa was appointed PM of the Core International Fund. Prior to Magellan, Elisa spent two years as an analyst at APRA, primarily stress testing and supervising Australian financial institutions. Elisa also worked at Macquarie Group as an equity analyst covering banks and at NYSE Euronext Paris in surveillance and research.

Elisa holds a Bachelor of Commerce (Honours) from the University of Wollongong and a Doctor of Philosophy from the University of New South Wales.


30 November 2023
Performance 3 Months 6 Months 1 Year Since Inception**
(% PA)
MFG Core ESG 0.23% 5.23% 15.40% 10.00%
Benchmark* -0.74% 6.12% 14.12% 11.06%
Out/Under Performance 0.97% -0.89% 1.28% -1.06%

* Benchmark is the MSCI World NTR Index (AUD)
** Fund inception 11 December 2020

Click here for further information on the benchmark.

Important Information: Calculations are based on exit price with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Inception date 11 December 2020. Past performance is not a reliable indicator of future performance.

Growth of AUD $10,000
30 November 2023

Click here for further information on the benchmark.

Important Information: Calculations are based on exit price with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). Inception date 11 December 2020. Past performance is not a reliable indicator of future performance.

30 September 2023

  % weight
Novartis AG 3.1%
Home Depot Inc 3.0%
ASMl Holding NV 3.0%
Apple Inc 2.9%
Alphabet Inc 2.9%
  % weight
Hermes International 2.9%
Proctor & Gamble 2.8%
Nestlé SA 2.8% Inc 2.8%
PepsiCo Inc 2.7%

Unit Prices

Date Net Asset Value Entry Exit
07/12/2023 4.2711 4.2754 4.2668
06/12/2023 4.2669 4.2712 4.2626
05/12/2023 4.2845 4.2888 4.2802
04/12/2023 4.2533 4.2576 4.2490
01/12/2023 4.2539 4.2582 4.2496
30/11/2023 4.2336 4.2378 4.2294
29/11/2023 4.2168 4.2210 4.2126
28/11/2023 4.2047 4.2089 4.2005
27/11/2023 4.2321 4.2363 4.2279
24/11/2023 4.2456 4.2498 4.2414
23/11/2023 4.2552 4.2595 4.2509
22/11/2023 4.2700 4.2743 4.2657
21/11/2023 4.2295 4.2337 4.2253
20/11/2023 4.2332 4.2374 4.2290
17/11/2023 4.2379 4.2421 4.2337
16/11/2023 4.2459 4.2501 4.2417
15/11/2023 4.2193 4.2235 4.2151
14/11/2023 4.2332 4.2374 4.2290
13/11/2023 4.2204 4.2246 4.2162
10/11/2023 4.2376 4.2418 4.2334
09/11/2023 4.1571 4.1613 4.1529
08/11/2023 4.1732 4.1774 4.1690
07/11/2023 4.1546 4.1588 4.1504
06/11/2023 4.0833 4.0874 4.0792
03/11/2023 4.0704 4.0745 4.0663
02/11/2023 4.0927 4.0968 4.0886
01/11/2023 4.0446 4.0486 4.0406
31/10/2023 4.0426 4.0466 4.0386
30/10/2023 3.9925 3.9965 3.9885
27/10/2023 3.9523 3.9563 3.9483
26/10/2023 3.9903 3.9943 3.9863
25/10/2023 4.0260 4.0300 4.0220
24/10/2023 4.0441 4.0481 4.0401
23/10/2023 4.0329 4.0369 4.0289
20/10/2023 4.0319 4.0359 4.0279
19/10/2023 4.0782 4.0823 4.0741
18/10/2023 4.0704 4.0745 4.0663
17/10/2023 4.0947 4.0988 4.0906
16/10/2023 4.1081 4.1122 4.1040
13/10/2023 4.0950 4.0991 4.0909
12/10/2023 4.0862 4.0903 4.0821
11/10/2023 4.0706 4.0747 4.0665
10/10/2023 4.0669 4.0710 4.0628
09/10/2023 4.0498 4.0538 4.0458
06/10/2023 4.0607 4.0648 4.0566
05/10/2023 4.0272 4.0312 4.0232
04/10/2023 4.0650 4.0691 4.0609
03/10/2023 4.0307 4.0347 4.0267
02/10/2023 4.0431 4.0471 4.0391
29/09/2023 3.9986 4.0026 3.9946

Distribution history


Please ensure that your Tax File Number (TFN) or Australian Business Number (ABN) is provided to the Unit Registry by Record Date, otherwise tax will be withheld on income attributed to you at the top marginal tax rate plus Medicare Levy.

If you have elected to receive distributions in cash, please ensure that your bank account details are provided to the Unit Registry by Record Date, otherwise your distribution payment will be withheld until a valid bank account is provided.

To review or update your TFN/ABN and bank account details, log on to the Unit Registry’s online portal.


Date Distribution per unit Reinvestment price  
June 2023 7.6600 cents $4.1179  Annual Fund Distribution 2023
December 2022 7.00 cents $3.5276 Interim Fund Distribution - 31 December 2022
June 2022 7.0000 cents $3.3983 Annual Fund Distribution 2022
December 2021 7.0000 cents $4.3474 Interim Fund Distribution - 31 December 2021
June 2021 7.0000 cents $3.9517 Annual Fund Distribution 2021

3 ways to access MFG Core ESG Fund

MFG Core ESG Fund (Managed Fund) (TICKER:MCSE)

  1. View the indicative Net Asset Value (iNav)*

    ICE iNav**
    AUD $
    Ticker details
      Indicative NAV
    Bloomberg MCSEAUIV INDEX
    Thomson Reuters MCSEAUiv.P
    Solactive iNav
    AUD $
    Ticker details
      Indicative NAV
    Bloomberg MCSEAIV
    Thomson Reuters MCSEAUDINAV=SOLA
  2. Check the current share price MCSE

  3. Buy on the Cboe - Ticker Code MCSE

Investors should read the Product Disclosure Statement (PDS) prior to making any investment decisions.

Additional information and forms

MFG Core ESG Fund (Managed Fund) (TICKER:MCSE)

1. Read the Product Disclosure Statement (PDS)

2. Click here to APPLY NOW and start your online application process.

You will need the following information handy to support your online application:

  • Identification documents (e.g. drivers license) 
  • Mobile number and email address
  • Your Tax File Number (TFN)
  • Complete the FATCA/CRS verification (if applicable)

Note: Magellan accepts initial direct investments from individuals with a minimum of $10,000.  You must be over 18 years of age.

Additional information and forms

  • Check your balance(s), view transaction confirmations and periodic statements.
  • Update your personal details.
  • Invest additional funds and switch investments.
  • Participate in the Distribution Reinvestment Plan (DRP).
  • Provide your FATCA/CRS certification.

MFG Core ESG Fund (Managed Fund) (TICKER:MCSE)

Speak with your adviser/broker. To locate an adviser in your area visit one of the following associations:


The Magellan Core Series are quoted on Cboe and can be bought and sold like any listed security. Alternatively investors can apply and redeem directly with Magellan. See How to Invest for more information.

Cboe Australia, a regulated stock exchange, offers trading in all Australian listed securities and the exclusive trading of CXA quoted Warrants and Funds.

We seek to be transparent with our clients and are making the following disclosures in relation to our listed funds:

  • Securities exchange announcements under each ticker code;
  • Estimated Net Asset Value ("NAV") per Unit published on Magellan Core Series' website daily;
  • Indicative intra-day NAV per Unit ("iNAV") published on Magellan Core Series' website daily and which is updated throughout the trading day;
  • Monthly fund factsheets on Magellan Core Series' website and on the securities exchange; and
  • The full portfolio on a quarterly basis with a one-month delay on Magellan Core Series' website and on the securities exchange.

The Responsible Entity intends to target a cash distribution yield of 4% per annum of the average of the month-end NAV per Unit over the two year rolling period ending on the last Business Day of the prior distribution period (“Target Cash Distribution”). The Responsible Entity has the discretion to distribute an amount higher than the Target Cash Distribution.

The distribution in respect of the units will be paid semi-annually (for the periods ending 30 June and 31 December of each year), although the Fund may make distributions more or less frequently at the discretion of the Responsible Entity. The Responsible Entity intends to announce the proposed Target Cash Distribution per unit on the announcements platform of the Securities Exchange Operator at the beginning of each distribution period. Additionally, the Responsible Entity intends to announce the final distribution per unit, and the distribution timetable, on the announcements platform of the Securities Exchange Operator prior to, or around the time of, the end of each distribution period.

Under the AMIT rules, investors will be assessed for tax on the income of the Fund attributed to them. Where the income of the Fund exceeds the amount of the distribution paid to investors (“Excess”), the Responsible Entity may, in a particular year, retain or accumulate in the Fund the amount of the Excess. In this scenario, the income of the Fund that is attributed to you (and that must be included in your income tax return) will be more than the cash distribution paid to you. The tax cost base of your units will increase to the extent of the Excess.

You can exit the Fund either by making a withdrawal request to the Responsible Entity using a Withdrawal Form or by selling units on the Securities Exchange via your stockbroker or online broker. How you enter the Fund does not affect the method by which you can exit the Fund.

To make a withdrawal request with the Responsible Entity…
If you have a Securityholder Reference Number (SRN) or Investor Number
You will need to make a withdrawal request to the Unit Registry.
If you have a Holder Identification Number (HIN) with your stockbroker or online broker
You will need to convert your holding from your HIN with your stockbroker or online broker to an SRN issued by the unit registry.
This is a standard process which your stockbroker or online broker can assist you with.



To sell your units on the Securities Exchange….
If you have a Securityholder Reference Number (SRN) or Investor Number
You can provide your SRN to certain stockbrokers who can sell your units on your behalf.
If your stockbroker does not offer this service, you will need to ask your stockbroker to convert or transfer your holding onto a HIN.  This is a standard process which your stockbroker can assist you with. You can then instruct your stockbroker to sell your units on the Securities Exchange.
If you have a Holder Identification Number (HIN) with your stockbroker
You can instruct your stockbroker to sell your units on the Securities Exchange.

There are important differences between exiting the Fund via the Securities Exchange or by withdrawing directly with the Responsible Entity, including the price you will receive. You should read the PDS or consult with your financial adviser before making any decision on how to invest in the Fund.

Registry enquiries (Automic)

Automic Group

GPO Box 2629

Sydney NSW 2001

Fax+61 2 8072 1409

Phone1300 408 792 (or +61 2 8072 1481)

Important Information: Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited (ABN 31 120 593 946, AFS Licence No 304 301). Past performance is not necessarily indicative of future results and no person guarantees the future performance of the fund(s), the amount or timing of any return from the fund(s), or that the investment objectives of the fund(s) will be achieved. This material has been provided for general information purposes and must not be construed as investment advice. It does not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should consider obtaining professional investment advice tailored to their specific circumstances and should obtain and read the relevant Target Market Determination ('TMD') and Product Disclosure Statement ('PDS') applicable to the fund(s) prior to making a decision about whether to acquire or continue to hold an interest in the fund(s). The TMD and PDS for the fund(s) are available on this website or can be obtained by calling 02 9235 4888. Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. Nothing contained herein should be construed as granting by implication, or otherwise, any licence or right to use any trademark displayed without the written permission of the owner. No part of this material may be reproduced or disclosed, in whole or in part, without the prior written consent of Magellan Asset Management Limited.