Magellan FuturePay

A growing monthly income, now and into the future

How it works >
Target monthly income
2.03 cents per unit#
Current Income Yield^
4.24% p.a. 28 May 2021

Investing for income and growth

Many investors, particularly those in retirement, are faced with a challenge.  How do you maintain ready access to your savings and invest to receive a regular and predictable income that keeps pace with inflation, without eroding your capital base?

Achieving these investment goals is difficult - usually because they compete with each other, and this has only been made harder with today’s low interest rates and volatile investment markets.

Today, many investors find that:

Obtaining a predictable income often means accepting lower income, with limited or no growth;

Investing for growth, often means accepting less predictable income and increased risk; and

Insurance based solutions (such as annuities) can provide predictable income but often at low rates of return and at the cost of limited or no access to capital.

 


Investors are therefore left dealing with this problem by using a combination of the limited tools available and accepting the compromises that result, often without realising it.
 

About Magellan FuturePay

Magellan FuturePay (‘FuturePay ’) has been designed to address this problem efficiently and effectively in a single investment product.

FuturePay aims to deliver investors four key benefits:

What is Magellan FuturePay?

FuturePay is an innovative, new, listed, actively-managed fund which aims to deliver investors: a predictable monthly income that grows with inflation, driven by returns and capital growth, with a focus on downside protection. This is underpinned by a reserving strategy and on-going income support, together with daily access to capital.

FuturePay  invests in a carefully selected portfolio of high-quality global companies that have the potential for attractive, long-term investment returns but are less volatile than the broader equities market.

Alongside FuturePay sits the Support Trust. Together with FuturePay , the Support Trust operates to provide a capital reserving and income support function. This is further supplemented by a MFG Reserve Facility. These provide FuturePay  with potential income support during poor market conditions, to assist FuturePay  in delivering its objective of providing investors with a predictable and growing monthly income stream, while reducing the risk of permanent capital loss. 

Think about it like saving for a ‘rainy day’. 

This combination of FuturePay ’s investment strategy, coupled with the Support Trust and a MFG Reserve Facility to provide reserving and income support to help manage volatility, all in a single product, is what makes FuturePay  unique.

 

The Futurepay approach >

Why FuturePay...?

Magellan’s Chief Executive Officer Dr Brett Cairns provides an overview of FuturePay, what it aims to deliver investors and what makes the product unique.

(Viewing time 12min) 

“Reserving is the unique feature of FuturePay. Once we understood the power and the benefits  of reserving, we set about trying to think of what the best reserving strategy was.”

Dr Brett Cairns, Chief Executive Officer

FuturePay - your retirement income, paid monthly

The desire to invest savings to receive a regular and predictable income (that keeps pace with inflation) is particularly true for those in retirement, who are now without a regular pay cheque.

Many retirees are left juggling the need to re-establish that regular PAY (to meet day to day living expenses) while ensuring they have enough savings left to maintain that income into the FUTURE, which is unknown.

FuturePay aims to provide a growing monthly income now and into the future, and so has the potential to enhance investing in retirement and retirement planning.

More on FuturePay and Retirement >

Ready to invest?

Invest now

# as at 2 June 2021, growing at inflation quarterly
^ Income Yield is calculated daily: Target Monthly Income x 12 / estimated NAV .