Would you recommend Magellan Global Trust as a good investment?
I watched the CommSec video interview with Hamish Douglass, he said the fund would pay a stable 4% consistent distribution yield, regardless of whether the trust made money or not. How will they be able to do manage this over a period of time?
Thank you
A: Here is the link to my product review in Monday’s Switzer Super Report:
https://switzersuperreport.com.au/magellan-sets-a-new-benchmark/
As I am not a current Magellan investor, I won’t be investing.
If they don’t generate sufficient income from dividends, realised capital gains etc, then they will pay the distribution out of the capital of the Trust (ie effectively returning to you as income some of the capital you invested).
Regards
