We are interested in investing in Magellan Global Fund for our SMSF to get exposure to International Equities.
Which would be the better way – the hedged or the normal one?
Also, should we invest directly with them or go through a broker?
A: If it was me, I would probably invest unhedged because I am reasonably confident that the AUD will weaken over the medium term (not necessarily the short term).
There is an argument that because a hedged fund will pick up the interest rate differential by hedging (around 2.0% pa), it starts in front.
In terms of the fund manager, Magellan has an excellent track record. You may also wish to take out some "manager insurance" by splitting your investment and selecting a second manager - perhaps Platinum. I wouldn't invest directly through a broker.
